RBA Cuts Cash Rate to Historic Low

The Reserve Bank of Australia has officially cut the country’s cash rate to a historic low of 0.1%.

As Australia faces a period of high unemployment, the move is a welcome one to support the creation of local jobs, as well as kickstarting growth out of the coronavirus recession

Other features of the package announcement consist of: 

·      a reduction in the cash rate target to 0.1 per cent 

·      a reduction in the target for the yield on the 3-year Australian Government bond to around 0.1%

·      a reduction in the interest rate on new drawings under the Term Funding Facility to 0.1%

·      a reduction in the interest rate on Exchange Settlement balances to zero

·      the purchase of $100 billion of government bonds of maturities of around 5 to 10 years over the next six months.

What does this mean for you?

Given the outlook amidst the coronavirus recession, the RBA is not expected to increase the cash rate for at least three years – meaning if you haven’t previously considered refinancing, now is a good time to do so.

Our expert team at Aston Financial Services can help you access and review loan options to best suit your financial goals, whether that be for your first property or a future investment.

Get in touch with our office today for a free consultation.