FIXED INTEREST TERM DEPOSIT and FIXED RATES HOLD THEIR LOWS
Australia ’ s recovery from COVID continues to challenge fixed interest investors , and may continue to do so for 2 years .
The Reserve Bank of Australia ( RBA ) is re-confirming their low cash rate commitment to support borrowers , business , residential and government , all hoping reignite some lasting inflation , corporate ‘ pricing power ’ and personal wage increases . The RBA has signalled a continuation to hold bond market yields low out to 10 years maturity . At the same time , the RBA continues to seek a stable , even falling Australian dollar , to boost exports .
Major banks have already modestly raised fixed rate residential borrowing rates beyond 3 year terms . Government and ‘ central bank ’ stimulus measures including by US President Biden continue . Recognised Australian bank 6-month term deposits average around 0.30 %.
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