The Reserve Bank of Australia has kept the cash rate at 0.25% for the sixth straight meeting in a row.
The RBA will be closely monitoring the impact of the COVID-19 shutdown in Victoria and uncertainty surrounding the pace of a national recovery.
It has previously stated that it sees a cash rate of 0.25% as a floor but may need to consider the merits of a further reduction against other stimulus options, if signs of a recovery fail to emerge. With 3.5 million Australians on Job Keeper, 1 million families having deferred their mortgage, and 2.3 million families experiencing mortgage stress, it is very possible that the nation will see systemic defaults, especially as government and bank supports are gradually restricted.
Both, fixed rates and variable rates are at a record low and lenders continue to offer very competitive rates. We can answer your questions and look at your circumstances to make sure you’re prepared for what could be coming next. This could mean refinancing or approaching your lender for a better rate. Because we do this type of work every day, we know what lenders can do to win or keep your business.
We’re here to help if you have any questions or wish to review your circumstances. Please don’t hesitate to contact us.