Reserve Bank looks to maintain 0.25% cash rate for foreseeable future: Finsure

Staff reporterAugust 8, 20200 min read

The Reserve Bank of Australia could stay on the sidelines as eastern states battle further outbreaks of COVID-19, according to the mortgage aggregating group Finsure.

John Kolenda, the managing director of Finsure, said the RBA looks set to keep its cash rate at an all-time low of 0.25 per cent for the rest of the year.

"Official rates will most likely be staying the same for the foreseeable future," Mr Kolenda said.

"The RBA reducing rates any further at the moment would have little impact on the economy and could do more harm than good."

Mr Kolenda added that, while not much activity is expected around official interest rates, home loan customers are still in a strong position with lenders offering a new round of rate cuts.

"If you have a home loan rate with a '3' in front of it talk to your bank, or better still seek expert assistance from a mortgage broker," he said.

"All owner occupiers should now be paying a rate in the low 'twos' and saving more than 1.0 per cent on a variable loan," he said. "On an average loan this saves hundreds of dollars a month."

Mr Kolenda said mortgage holders should not be afraid to seek a lower rate even if they have been on a six-month repayment holiday.

"Banks will offer a better deal if you are ready to resume repayments so don't be complacent about your interest rate as this can potentially cost you a lot of money," he concluded.

Staff reporter

Finsure Group
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