The Reserve Bank has slashed interest rates by 25 basis points to a historic low of 2.75 per cent, the first reduction this year.
Its decision to slash 25 basis points is aimed at priming those areas struggling as the economy transforms away from mining, in a effort to boost economic growth in Australia, which is still below trend. Continue reading RBA cuts interest rates to record low →
In a widely expected move, the Reserve Bank has opted to keep interest rates on hold at 3.5 per cent today.
The decision comes as inflation remains reasonably steady and after the property market has shown tentative positive signs heading into spring. Continue reading Interest rates hold steady at 3.5 per cent →
The Reserve Bank has cut interest rates by 0.25 per cent.
The 25 basis point fall comes on the back of a similar cut last month. The reduction is good news for people paying off a mortgage. “This will put an extra $60 into the pockets of borrowers each month,” says Domain property expert Carolyn Boyd.
The official interest rate is now 4.25 per cent.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
Boyd says, coupled with last month’s cut, the drop represents a double windfall for borrowers because if they can keep their repayments at the same level they will be able to pay down their mortgages faster.
“It’s a smart idea to keep your repayments at the same amount as you were paying before this cut, and the one on Melbourne Cup day,” she says. “That way you can pay your mortgage off sooner but have no less money in your pocket than you did last month. There’s plenty to gain here with no extra pain.”
Many lenders don’t automatically readjust repayments when rates are cut, meaning borrowers often have to simply sit back and watch their loan shrink faster when rates fall.
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 →
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 →
If you want to hear some common sense on what the Japanese government should do to repair its economy, click here.
You won’t find praise of the latest multi-trillion yen stimulus package. And you won’t hear any fawning over the supposedly heroic central bankers.
No. What you’ll hear is a straightforward and common sense argument for why the Japanese central bank should increase interest rates right now.
If it doesn’t, it will result in more wasteful and misdirected government spending and even greater pain for the Japanese. Continue reading Australian economy needs to go cold turkey →
Interest rates are on hold for now but economists expect the next move to be up.
Home buyers are turning to fixed-rate mortgages in response to the steady rise in interest rates last year and predictions that rates will go higher this year.
Mortgage broker AFG publishes a monthly mortgage index, which shows that the proportion of fixed-rate mortgages increased from just 2 per cent of its total new lending at the start of last year to 3.4 per cent in July and then 12.6 per cent in December. Continue reading Home loans: to fix or not to fix? →
Christmas cheer from borrowers as RBA says official interest rates will stay on hold after last month’s shock rise.
The Reserve Bank has left interest rates unchanged, providing relief for borrowers and retailers in the crucial shopping weeks before Christmas.
The central bank kept rates at 4.75 per cent – the level it raised them to last month – amid signs of weakness in parts of the economy not benefiting from the rekindled mining boom. Continue reading RBA: Interest rates on hold →