The RBA reduced its cash rate from 0.75% to 0.50% in a co-ordinated move with the Government to support and protect our economy from the impacts of both the recent bushfires and the yet unknown impact of the coronavirus (COVID-19).
In terms of lending, there has been an increase in applications for both clients refinancing their loans to improve their interest rates and clients seeking loans for the first time. February fixed rates have continued lower, with 2-year rates at extreme lows – for example, an ANZ 2-year fixed rate loan at 2.68% is one of the lowest in the market. The First Home Loan Deposit Scheme has been well received in the market, with almost all 10,000 borrower allocations now filled by accredited lenders.
The domestic business confidence and consumer confidence measures continue to be low and a notable savings mentality in place. From an economic perspective, there are still some tough times ahead for many and it is expected we will see further rate cuts and cash stimulus from our Government in the weeks ahead.
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