Rates on hold….again!

By Fornaro | 01 February 2022

At the first meeting of 2022, the Reserve Bank of Australia (RBA) has kept the official cash rate unchanged at the historic low of 0.10 per cent. Check out the statement on the Reserve Bank’s website.

The RBA previously said it wouldn’t raise the cash rate until 2023 or 2024 to give the economy time to recover from the pandemic. However, some bank economists predict that the rise in inflation may force a move sooner.

RBA Governor Philip Lowe said that while inflation had picked up, it was still low. He said the Board would not increase the cash rate until inflation was “sustainably within the 2 to 3 per cent target range”.

Despite the cash rate staying put there have been movements in interest rates. So, if you’ve had your mortgage for a while, now is the time to check it’s still competitive.

Talk to Fornaro today and we’ll help you review your existing loan and compare the market for you.

Property Market Snapshot

Monthly Home Values figures as of 31 January, 2022. Australian auction results, clearance rates and recent sales for the week ending 30 January, 2022. The clearance rate is preliminary and current as of 11:41 am AEDT, 31 January, 2022. We recommend that you seek independent financial and taxation advice before acting on any information in this email. It contains general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees and charges apply.

Sources: CoreLogic RP Data Daily Home Value Index: Monthly Values, www.realestate.com.au, Minutes of the Monetary Policy Meeting of the Reserve Bank Board, Statement by Philip Lowe, Governor: Monetary Policy Decision