This is a continuation of the benchmark rate that was set in the last quarter of 2020, and shows that are RBA believes that the concerns over Covid and general economic feel in the market is one of stability.
And for the interest of many viewers of the RBA policy, this has been the lowest rate for the RBA and its history in Australia. It clearly shows that the government's effort to provide fiscal stimulus to try and counter below boring rates and also assist in the country's economic continuance during the pandemic.
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No small part shows some Keynesian economic views of trying to keep growth stable until mid-2021 when the proposed JobKeeper campaign program is due to finish. Many have asked when we are likely to see rates start increasing and this can be difficult to ascertain given some countries with negative interest rates at present.
Plus, a concern raised by the Australian Health Practitioner Regulation Agency (AHPRA) that if this is to be the case, what would be some of the driving factors? If so, property prices, unemployment, and consumer spending impact the market significantly. Then, we could see the rate increase conversely as mentioned previously this could be reversed if any of those factors are affected.
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Property commentators are warning many property owners to be cautious not to make rash decisions when deciding to invest in property. If such happens, always contact our mortgage brokers to see that the deals we have on offer and are best suited to the future financial goals.
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Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending.