The RBA lowers interest rates – but by how much?

The Reserve Bank of Australia (RBA) has taken emergency action in response to growing global and domestic economic concerns, now initiating a decline in interest rates from 0.25%.

This lowers the spot rate to an all-time low of just 0.25%.

The decision comes as the pandemic threat COVID-19 continues to cause chaos and uncertainty around the world.

Sarah Megginson, editor of Your Investment Property magazine, said this unprecedented decision was made to encourage financial accessibility for households, who still don't know how to COVID- 19 should affect them.

"Until recently, there were signs that the economy was improving and that the housing market was rebounding. Latest unemployment figures from ABS show that the unemployment rate stood at 5.1% in February 2020, compared to 5.3% in January, and real estate prices ended 2019 at around 4% nationally, "said Megginson.

"It shows how much can change in a short period of time and with this decision, as well as other funding announcements, the Reserve Bank is trying to reassure Australians that it will take all measures possible to help them get through this period. . »

Although the situation is changing rapidly and fear and uncertainty prevail, Megginson warned the Australians to remember that current conditions will not last forever.

"At some point, the virus will be contained and the Australian economy will recover. In the meantime, a priority for the Reserve Bank is to support jobs, income and businesses, so that when the health crisis recedes, the country will be well positioned to recover strongly, "said Philip Lowe, Governor: Monetary policy decision.

The Reserve Bank will also provide a three-year funding facility to authorized deposit-taking institutions (ADIs) at a fixed rate of 0.25%. ADIs will be able to obtain initial funding of up to 3% of their existing credit.

"They will have access to additional financing if they increase their loans to businesses, especially small and medium-sized businesses. This installation costs at least $ 90 billion, "added Lowe.

"The Reserve Bank will also continue to provide liquidity to the Australian financial markets by carrying out repo transactions for one month and three months in its daily market operations until further notice. In addition, the Bank will engage in longer-term repurchase transactions with a term of six months or more at least once a week, as long as market conditions warrant. The various elements of this package are mutually reinforcing and will help reduce financing costs across the economy and support the provision of credit, especially to small and medium-sized enterprises. »

Top suburbs:

Canterbury

,

werribee

,

bligh park

,

coorparoo

,

rockville

Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in a property, it is important to make sure that you not only have the lowest available rate you can get, but

Just fill in a few details here below and we will then arrange a local mortgage broker to contact you and determine the features or types of loans that are right for you. Needs. We will even help you with the paperwork. In addition, an appointment is free.

We value your privacy and treat all of your information seriously – you can check
our privacy policy here

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.