The RBA confirmed today that the official cash rate will remain on hold at 0.1%. The Board restated its position on keeping the rate at its current level “until actual inflation is sustainably within the 2 to 3 per cent target range [which the Board expects] will not be met before 2024”.
In it’s latest Media Release, the Board remarked that “the experience to date has been that once virus outbreaks are contained, the economy bounces back quickly”. So while the latest lockdowns are having an impact on GDP for the September quarter, overall the mood is positive about Australia’s economic recovery.
Concerning the housing market, the Board issued the following statement:
Housing markets have continued to strengthen, with prices rising in all major markets. Housing credit growth has picked up, with strong demand from owner-occupiers, including first-home buyers. There has also been increased borrowing by investors. Given the environment of rising housing prices and low interest rates, the Bank is monitoring trends in housing borrowing carefully and it is important that lending standards are maintained.
The RBA has consistently stated in recent months that the official cash rate is unlikely to change before 2024. The record low interest rate is just one factor underpinning continued demand for housing across the nation.
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