At its first meeting for 2021 the RBA kept the Cash Rate at a record low of 0.10%.
Additionally, they reaffirmed their commitment to supporting Australia’s economic recover via the term funding facility and an additional commitment of a further $100 Billion from April when the current facilities expire.
This is despite a quicker than expected recovery out of the short but sharp recession of 2020.
Retail spending has recovered nicely, house prices are booming in most capital cities and perhaps not surprisingly, regional areas too, unemployment has come down and there are positive signs of wages growth.
In what would be one of the more definitive statements seen from the RBA they stated the following:
The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market. The Board does not expect these conditions to be met until 2024 at the earliest.
Clearly a statement designed to provide a level of certainty that we will be enjoying these historically low interest rates for some time.
If you're unsure whether your own current interest rate is in fact reflective of these all-time-low home loan interest rates, give us a call or talk with your Mortgage Broker to see if we can find you one that is!