MONEYQUEST’S AUGUST CASH RATE MESSAGE

The Reserve Bank of Australia (RBA) Board announced on Tuesday August 3, 2021, that the cash rate is remaining on hold at 0.1%. The RBA Board’s July meeting minutes suggest that the current low interest rate environment is likely to continue for quite some time, because the board does not envisage increasing the cash rate until actual inflation is sustainably within the 2 to 3 percent target range, which they don’t believe will be achieved before 2024.

Board members noted that “the economic recovery in Australia had been stronger than earlier expected” and “more Australians had jobs than before the pandemic,” however the board remained committed to maintaining “highly supportive monetary conditions for a return to full employment in Australia and inflation consistent with the 2 to 3 per cent target.”*

So based on this, we are encouraging customers to consider striking while the iron is hot. Now might be the ideal time to re-evaluate your finances while variable interest rates remain relatively low. However, bear the following in mind:

  1. Preparation is key – Your local MoneyQuest mortgage broker can help you to prepare for this next stage of your finance journey and assist you with entering the property market sooner.
  2. Competition is fierce – With the unemployment rate declining, more people are in a position to buy property or refinance. There are currently more buyers than sellers which has created a highly competitive environment. So to give yourself the best chance of securing your dream home, call MoneyQuest to find out how much you can comfortably borrow.

As always, we recommend reaching out to your local MoneyQuest mortgage broker to discuss your options, and to learn more about the current low interest rate environment.

* Minutes of the Monetary Policy Meeting of the Reserve Bank Board – https://www.rba.gov.au/monetary-policy/rba-board-minutes/2021/2021-07-06.html

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