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December 21- Cash Rate On Hold

In the final cash rate decision for 2021, the Reserve Bank of Australia (RBA) Board elected to hold the cash rate at 0.10%, meaning we won’t see any action taken until at least February 2022. When discussing the reasons for keeping the rate on hold, Governor Philip Lowe had this to say: “The Australian economy is recovering from the setback caused by the Delta outbreak. High rates of vaccination and substantial policy support are underpinning this recovery. Household consumption is rebounding strongly and the outlook for business investment has improved. ” “Housing prices have risen strongly over the past year, although the rate of increase has eased over recent months. Housing credit increased by 6.7 per cent over the past year, but, more recently, the value of housing loan commitments has declined from high levels.” “The Board is committed to maintaining highly supportive monetary conditions to achieve its objectives of a return to full employment in Australia and inflation consistent with the target.” Despite a slight decline of loan commitments in recent months, Australian lenders are still offering some of the most competitive deals in our history. Make sure to get in touch and discover if you can get a better deal on your next loan.


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