November 2020: the RBA goes to 0.10%
Cash rate to 0.10%, three-year yield target to 0.10%, $100 billion of QE. Sky News asked 'how low can it go?' The honest answer was: this is the floor.
The full package
On 3 November 2020 the RBA cut the cash rate to a historic low of 0.10%, expanded the Term Funding Facility, and launched $100 billion of government-bond QE. Fixed-rate two-year mortgage offers fell below 2.0% within weeks.
The trap that came later
I was on air saying: lock the longest fixed term your bank will give you. Those who locked four-year fixed at 1.99% in late 2020 saved roughly $30,000 in interest before the rate rose. Those who took variable to chase 'flexibility' wore the full 2022–2023 hiking cycle.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.