At its March meeting, the RBA announced the official cash rate remains on hold at 0.10%. Hume Bank CEO, Stephen Capello, spoke with Kylie and Kev about what this means for our region.
The cash rate remains on hold for the fourth month in a row, while February saw the highest house price increase in 17 years.
Stephen discusses how housing supply and demand, inflation and unemployment, travel, and the COVID-19 vaccine could impact interest rates for the next two to three years.
“Listeners should be aware that whilst rates maybe at an all-time low, borrowers need to keep a cool head. Borrowers should assess their appetite to carry debt over a much longer period than our current low interest rate environment. When the economy does recover, interest rates will rise so debt needs to be serviced over a longer period than just the current low rate environment,” he said.
Listen to the full clip below: