3 February, 2021
Cash Rates Remain Unchanged
This week, the RBA met for the first time in 2021 and decided to leave the cash rate unchanged at 0.10%.
The Reserve Bank have been encouraged by recent better than expected unemployment and CPI numbers. It will also be keeping a close eye on rising house prices, lending growth, the continued impact of COVID-19 on our major trading partners, the Australian dollar and its effect on exporters and the looming reduction to government support packages.
Rates are at a record low and lenders continue to offer very competitive rates. Yesterday’s announcement by the RBA that they are keeping the target cash rate on hold came as little surprise to Cairns Bank.
Peter Phillips, General Manager Cairns Bank believes this is great news for borrowers and contributes to a positive environment for the local property market which is already very active.
“Many people seem to have found a silver lining through some of the COVID restrictions, having been able to save more and set themselves up with enough money for a deposit on a house.
“With rental properties scarce, and expensive, mortgage repayments relatively low thanks to the interest rate environment, throw in a some government stimulus incentives for new constructions (and a helpful local bank) and voila – a great outcome.”