RBA Update October 2016

By Matthew Kenworthy | Reserve Bank News

For the second month running, the Reserve Bank has announced no changes to the cash rate.

What Comments Did They Make?

Financial markets have continued to function effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative.

Many lenders are offering record low interest rates for their target borrowers. These generally include borrowers:

  • Looking to borrow no more than 80% of the value of the security property.
  • Borrowing for Owner-Occupied purposes.
  • Making Principal & Interest Repayments.

If you haven’t reviewed your loans within the past 2 years and your needs fit the above requirements please get in contact. We may be able to save you a considerable amount on your current borrowings.

Inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.

The RBA has indiciated that they are expecting interest rates to remain at low levels for some time. Lenders are pricing fixed interest rates accordingly. Many lenders are offering 5 Year Fixed Rates below 4% which is very close to their variable rate offerings.

Full notes from the meeting can be found at the RBA Website.

About the Author

Matthew Kenworthy is a specialist in all aspects of Residential & Commercial Finance. He can assist all borrowers from First Home Buyers to Property Investors with Large Portfolios.