The RBA has again confirmed that the official cash rate will remain on hold at a record 0.1 per cent.
The Australian economy is beginning to recover after the interruption of the Delta outbreak and as various restrictions are eased around the country, we will continue to bounce back quickly.
The RBA Board advised that they anticipate a GDP growth of 3 per cent over 2021 and 5½ per cent and 2½ per cent over the following two years, although COVID-19 continues to be a source of uncertainty. It appears likely, however, we will see a boost in employment rates in the coming months with a central forecast for the unemployment rate to decrease to about 4 per cent at the end of 2023.
Whilst, inflation has picked up somewhat, it is still considerably low at 2.1 per cent.
The RBA Board stated, “Housing prices are continuing to rise in most markets and housing credit growth has picked up due to stronger demand for credit by both owner-occupiers and investors. The Bank welcomes APRA’s recent decision to increase the interest rate serviceability buffer on home loans. It is important that lending standards are maintained at a time of historically low interest rates”.
The Board maintains it, “will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range”.
Looking to buy in Melbourne and sick of missing out at auction? Talk to me about how I can help you buy your new home faster, for less.
Ask about our Home Buyer Search and Acquisition Service, where we do all of the legwork on your behalf to MAKE IT EASY to secure your new home.
To book a free 30-minute consultation, simply click here and choose a time convenient to you. Alternatively, give me a call on 03 9686 2288 to discuss how I can help.
Give me a call on 03 9686 2288 to discuss how I can help. I offer a free consultation, so why not call today?
