RBA Announcement - April 2020 - Addisons Advisory Group

RBA Announcement - April 2020

 At its meeting today, the Reserve Bank of Australia (RBA) decided to keep the official cash rate at 0.25%. This follows two consecutive cash rate cuts to 0.50% and 0.25% in March.

With the global coronavirus (COVID-19) crisis coming off the back of the Australian bushfires, RBA decided to keep the cash rate to record lows to support the economy as it responds to these various crises. According to RBA governor Philip Lowe at the previous meeting, “At some point, the virus will be contained and the Australian economy will recover. In the interim, a priority for the Reserve Bank is to support jobs, incomes and businesses, so that when the health crisis recedes, the country is well placed to recover strongly.”

Along with the decline in the cash rate and changes to the fiscal and monetary policy, the housing market is also experiencing a sharp slowdown in activity, with the downside risk for housing values increasing. Moreover, CoreLogic forecasts that the slowdown in growth is likely to continue into negative in the coming months.

With this outlook, we may experience low interest rates for a while. You may want to compare available home loans to make sure you’re still getting a competitive offer that suits you. Get in touch with us so we can help you shop around for the right home loan and arrange a loan pre-approval!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. All loans are subject to lenders terms and conditions – fees, charges and eligibility criteria apply.