RBA trims cash rate to new record low 0.10%

If you didn’t back a winner on Melbourne Cup Day then fret not: the Reserve Bank of Australia (RBA) has delivered mortgage holders a win by cutting the official cash rate by 15 basis points to a new record low of 0.10%.

RBA Governor Philip Lowe says the cash rate cut is part of a package of measures to support job creation and economic recovery from the COVID-19 pandemic.

“Given the outlook for both employment and inflation, monetary and fiscal support will be required for some time,” Governor Lowe said in a statement.

As such, Governor Lowe added the low cash rate is likely here to stay until actual inflation is sustainably within the 2 to 3% target range.

“Given the outlook, the board is not expecting to increase the cash rate for at least three years,” Governor Lowe said.

Want to know what this rate cut means for your home loan?

This is the last rate cut the RBA is able to make before venturing into negative territory (which it’s previously indicated it won’t do).

It’s also the sixth RBA rate cut since June 2019, which means if you haven’t had a home loan health check in the past year, there’s a good chance you’re paying more interest than you need to on your home loan each month.

Avatar
Lending Central
Bio about the Team LC talented authors

More news

RBA trims cash rate to new record low 0.10%

If you didn’t back a winner on Melbourne Cup Day then fret not: the Reserve Bank of Australia (RBA) has delivered mortgage...

Switch lenders if rate cut is not passed on: RBA

Mortgage holders and business operators are being encouraged by the RBA to switch lenders if their bank doesn’t pass on the latest...

RBA trims cash rate to new record low 0.10%

If you didn’t back a winner on Melbourne Cup Day then fret not: the Reserve Bank of Australia (RBA) has delivered mortgage...

Housing market confidence ‘booms’, cash rate cut expected

Consumer sentiment is surging, confidence in the housing market is booming, and the number of experts tipping a Melbourne Cup Day cash...

Related news

Switch lenders if rate cut is not passed on: RBA

Mortgage holders and business operators are being encouraged by the RBA to switch lenders if their bank doesn’t pass on the latest...

Lenders begin contacting borrowers who have deferred loans

If you’ve deferred your home or business loan then it’s likely your bank will reach out to you in the coming weeks....

How to get a home loan if you’re self-employed

There’s no doubt there are a lot of perks of being your own boss. But alongside the many benefits come additional challenges,...

Homeowners refinancing in record-high numbers

Homeowners in record-high numbers are taking advantage of reduced interest rates and competitive refinancing offers. Are you ready to take the leap? 

LEAVE A REPLY

Please enter your comment!
Please enter your name here