September cash rate remains unchanged at 0.10%

Reserve Bank of Australia

At its monthly meeting today, the Reserve Bank has again confirmed the official cash rate will remain at 0.10%.

As the country starts to discuss what post-lockdown life will look like, the focus out of the meeting will be on the RBA’s government bond-buying program.

Prior to last month’s meeting it was anticipated that the bank would defer previously announced reduction plans and maybe even increase bond purchases.

Instead, it surprised the market by standing by its reduction plans.

The purchase of government bonds, or quantitative easing as it is known, helps stimulate the economy by increasing the supply of money, keeping interest rates low and putting downward pressure on the Australian dollar which assists exporters.

Rates are at a record low and lenders continue to offer very competitive rates.

An AFG broker can answer your questions and look at your circumstances to make sure you’re prepared for what could be coming next. This could mean refinancing or approaching your lender for a better rate. Because an AFG broker does this type of work every day, they have a pretty good idea what lenders can do to win or keep your business.

We’re here to help if you have any questions. Please don’t hesitate to get in touch with an AFG broker.