Hume Bank CEO, Stephen Capello, caught up with Kylie and Kev to chat through this month's RBA interest rate announcement.
At its meeting on Tuesday, 1 June 2021, the RBA decided to keep the official cash rate on hold at 0.10%.
Stephen, Kylie and Kev discussed some of the key points affecting this month's decision and what borrowers should be keeping in mind, including:
- Lack of housing supply and low interest rates which is causing house prices to rise up to 15% in regional Australia. This is good news for investors, but is impacting first-time home buyers.
- Strong economic recovery which is triggering some adjustments in long-term (4- and 5-year) fixed interest rates.
- Borrowers should review their current interest rate and refinance if necessary. Borrowers should also start thinking about building up a buffer if they are able to, before rates start to rise in two to two and a half years.
You can read the full statement by RBA Governor, Philip Lowe on the RBA website.