RBA lowers rates by 0.25% to 2.75%

At today’s meeting the Reserve Bank of Australia (RBA) reduced the cash rate by 0.25% to 2.75% pa.

While this is good news for the homeowners, many of our retiree clients are feeling the pinch on the deposit side of the coin (no pun intended).

The “peak investment” in the resource section statement seems to be the most troubling for our economy for the next few years, the miners have been pulling back heavily on wages and discretionary spending – much to the detriment of many small mining linked communities and many thousands of workers.

View the RBA release here.

RBA lowers rates by 0.25% to 3.25%

At today’s meeting the Reserve Bank of Australia (RBA) reduced the cash rate by 0.25% to 3.25% pa.

The global economy is slowing further, China taking the heat off is impacting the Aussie world. Commodity prices have been falling, hitting many miners and related sectors. Fortescue being an obvious one having to renegotiate debts. The retail sector has continued to suffer, with the industry crying out for this cut today.

View the RBA release here.

RBA holds cash rate at 3.50%

Mixed messages and thoughts from Aussie economists today as RBA leaves the rates the same. Without a crystal ball, who knows? I know that house prices persist at high multiples, and commercial business is mixed between dying and booming depending on what sector it is pegged to.

RBA Logo

At its meeting today, the Board decided to leave the cash rate unchanged at 3.50 per cent.

Full statement available from RBA Website.

RBA holds cash rate at 3.50%

Craig James, Commonwealth Bank’s chief economic wizard, made note of the slow economy, inflation figures are low and nothing much is really taking off, so the RBA is in a tough spot of trying to balance it all out. I look forward to seeing our small businesses growing again soon…

RBA Logo

At its meeting today, the Board decided to leave the cash rate unchanged at 3.50 per cent.

Full statement available from RBA Website.

RBA lowers rates by 0.25% to 3.50%

At today’s meeting the Reserve Bank of Australia (RBA) cited the rocky markets overseas and came good on the “expected” interest rate drop. 0.25% should shave about $50 per month off the average $300,000 mortgage. What sort of rates will the banks pass on and what impact does it have on you? Comments welcome.

Governed Glenn Stevens’ media release points to European economic concerns, and rising costs of finance for our banks. Amongst other things this lead to a “more accommodative stance of monetary policy”. What do our depositors think?

View the RBA release here

RBA keeps cash rate at 4.25%

As nine out of ten nutritionists, and economists, predicted, the RBA holds rates today.

The basic story is Australia is doing roughly ok, the USA is improving, some of Europe are up the creek, but will still survive.

For mortgage holders, its same old same old, with credit costs running near their long term average, although the average home-owner has been feeling the brunt of inflation with utilities and living costs surging in the past year (particularly around SE Qld were water was sold off).

RBA Logo

At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.

Full statement available from RBA Website.

RBA drops cash rate to 4.25%

RDG: Good news for mortgage holders: RBA drops 0.25%. I imagine every mortgage holder will be watching the banks to see what they pass on.

Key points from today’s release include:

  • China has been slowing (RDG: although still kicking our…)
  • European sovereign debt crisis has knocked everyone around
  • Aussie dollar is still high
  • Short-term rates (term deposits etc) have dropped, but credit is still tough for the banks, people are not borrowing
The RBA is aiming to ease into “idle” mode. Interest rates are coming back to longer term averages, term deposits are coming down which I expect will gradual lead people back into investments (which is a good thing).

RBA Logo

STATEMENT BY GLENN STEVENS, GOVERNOR: MONETARY POLICY DECISION

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 4.25 per cent, effective 7 December 2011.

Continue reading RBA drops cash rate to 4.25%