The Reserve Bank has left its key interest rate unchanged for another month, ignoring for now the gathering signs of a slowdown in global growth.
The central bank kept its cash rate at 4.75 per cent where it’s sat since Melbourne Cup Day last year.
The RBA’s decision was widely expected as the central bank attempts to weigh the threat of higher inflation from a rekindled mining boom against weaker growth for much of the rest of the economy. Turmoil on financial markets – which has knocked about 15 per cent off local share values in the past three months alone – was also not enough to prompt a rate reduction. Continue reading RBA extends interest rate pause
A WEEK ago experts were warning interest rates were going up. Now lenders are cutting them.
Sydney-based banks – Commonwealth, Westpac and St George – led the pack yesterday reducing their interest rates on fixed-term loans.
The fixed-term rates offered by these lenders are now well below the average discount variable rates which rise and fall with movements in the Reserve Bank’s official cash rate. Continue reading Big banks cut fixed rates in response to world turmoil
The central bank has again signalled that interest rates will increase “at some point” but says it will wait for more news on the state of the international economy and on Australia’s domestic demand.
The minutes of the Reserve Bank of Australia’s (RBA) June 7 board meeting, show the bank believes inflation is being moderated by a high Australian dollar and recent lowering labour costs.
But the bank warned that growth in the resources sector may cause a gradual pick-up in inflation. Continue reading RBA: Rate hike ‘necessary’ at some point
Mortgage holders were given a boost today when the Reserve Bank decided to keep interest rates on hold.
While the move is hardly a surprise, it will still be welcome news for people paying off a mortgage.
Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage. Continue reading Interest rates on hold
Although RBA watchers agree the next move is up, they are divided over whether rates will head north this half or next.
Announcing yesterday’s widely expected interest rate reprieve, with the official cash rate kept on hold at 4.75 per cent, RBA governor Glenn Stevens said monetary policy was “appropriate in view of the general macroeconomic outlook”. Continue reading It’s uphill from here on interest rates