The Reserve Bank of Australia (RBA) decided to keep the official cash rate unchanged at 0.10 per cent at its meeting on 1 June 2021. To view the official RBA statement, please visit the Reserve Bank’s website.
At its previous meeting, the RBA confirmed that the final date for drawings under the Term Funding Facility is 30 June 2021. “Given that financial markets in Australia are operating well, the Board is not considering a further extension of this facility,” RBA governor Philip Lowe said.
The RBA has upgraded its inflation and economic growth forecast but insists that the record low interest rates will remain for another three years to generate wages growth. The Board will consider whether to extend its government bond purchases at their July meeting. Mr Lowe said the Board is prepared to undertake further bond purchases to assist with progress towards the employment and inflation goals.
Given the low interest rates, the competition for the limited supply of Australian homes is heating up. If you’re considering buying soon, it is important to get in touch with us to arrange a pre-approval for a home loan. A pre-approval will help you move quickly when you find the right property and the ability to negotiate with confidence. Speak to Fornaro about your plans today.