In our latest policy meeting on February 17, 2022, the Monetary Board kept the key policy interest rate steady at a historic low of 2.0 percent. The Monetary Board deems it prudent to maintain the BSP’s accommodative policy stance given a manageable inflation environment and emerging uncertainty surrounding domestic and global growth prospects.
With interest rates on housing loans around 5½ per cent, the cash payments involved in servicing a housing loan are now not much more than those involved in renting. Combined with the First Home Owner Grant, this has attracted a lot of first home buyers into the market. Governments are also supporting the economy with increased spending.