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The Reserve Bank of Australia (RBA) has announced the cash rate for February, after a number of cuts occurred in 2020 to cope with the COVID-19 pandemic.
The RBA has made the decision to keep the cash rate at the historically low 0.1 of a percentage point.
It spells good news for the nation's real estate agents, who are already seeing strong market demand for property thanks to super-low mortgage rates combined with various housing stimulus measures.
The unchanged figure was widely expected by Australian economists, with the chief economist at CreditorWatch, Harley Dale, stating that the RBA had used up its ammunition late in 2020.
He said the focus for 2021 will “be firmly on federal and state fiscal policy to complement super-low borrowing rates and keep our Australian economic recovery on track”.
“In terms of all the policies that the RBA has in place, the central bank will be closely keeping an eye on early 2021 economic updates for key sectors such as retail,” Mr Dale noted.
The decision also comes after the Prime Minister, Scott Morrison, addressed the National Press Club on Monday, 1 February 2020, to highlight a number of policies — inclusive of tax cuts set to affect small and medium-sized enterprises.
Mr Dale said such policies “are in play against a backdrop of metrics — such as Australia’s unemployment rate — being in much better shape than many feared through much of last year”.
According to the economist, the SME sector will be “a key barometer” of Australia economic recovery across the year, especially as JobKeeper draws to a close.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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