Good news! Strong price growth in 2021 residential properties
Good day! Welcome to another informative piece of good news from the Whitsunday Times.
With the reliance on interest rate cuts for over 30 years to our homebuyers, the interest rate cut may possibly put to rest into the future.
Whitsunday Times stated the following, “If we do see continued upward pressure on borrowing costs the RBA is not likely to sit idly by. It will use its various tools to attempt to continue to artificially suppress interest rates.”
This means that RBA has set targets, it doesn’t want a 3-year government borrowing costs to exceed (0.1%). The RBA is now relying on buying bonds to secure borrowing costs within its target range.
The good news is that they were able to suppress this to their desired level despite setbacks whenever their target exceeded.
However, the Australian Government's long-term borrowing costs have seen far more explosive growth in their relative cost.
According to the Whitsunday Times,
Despite the RBA Governor's promises of rates staying low for at least three years, the directions of interest rates are not entirely within his control. They are ultimately at the mercy of the unpredictable tides of the global bond market.
Going forward, rates may stagnate at roughly this level or even go slightly lower again if the global recovery shows signs of faltering. But as the global consensus turns towards a more inflationary future, it's possible the days of bargain basement interest rates may already be slowly drawing to a close.
If you want to learn more about this Whitsunday news, please check out this article here.
