Time to get into the banks....The nation’s banks are set to rush for a share of $64bn in low-cost funds from the Reserve Bank over the next three weeks, marking the last chance for lenders to lock in ultra-cheap mortgage rates before costs start to rise.
The closure of the Reserve Bank’s $209bn term funding facility at the end of this month signals the end of one of the emergency measures put in place by the central bank when the Covid pandemic hit early last year.
The facility, which allows the banks to price fixed mortgages, was aimed at ensuring cash kept flowing through the economy.
Reserve Bank assistant governor, financial markets, Christopher Kent, said drawdowns on the facility had accelerated in recent weeks to $145bn – similar to the demand in September 2020 for the initial tranche.
