Cup day meeting sees interest rates dropped to historic low

3 November 2020

The Reserve Bank of Australia’s move to cut official interest rates to 0.10% at its November board meeting has been welcomed by the Real Estate Institute of NSW (REINSW).

REINSW CEO Tim McKibbin said the low interest rate environment is supporting robust buyer demand, as demonstrated by figures this week which show a return to price growth in some housing markets.

“The decision to lower the official cash rate to a new historical low is good news for existing mortgage holders and those looking to purchase property, including first home buyers,” Mr McKibbin said.

“Some major lenders pre-empted the RBA’s latest cut by reducing their own rates in recent weeks, and the market is hopeful all major lenders will follow suit.

“However, while low rates support buyers and existing property owners, more must be done to support landlords in New South Wales who are being adversely affected by the NSW Government’s rental moratorium.

“There are increasing numbers of investors being forced to sell their retirements nest-eggs because Government has unnecessarily extended the moratorium on tenants paying rent.

“Low interest rates will play a key role in our economic recovery. Equally important to the recovery, though, are the mum and dad investors who play such an important role in providing choices for people to have a roof over their heads.

“The NSW Government must urgently lift the rental moratorium and support these investors, as well as their tenants, so the state’s rental market can play its part in the recovery, just as residential sales do,” Mr McKibbin said.

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