Category: Interest Rates

RBA drops cash rate to 4.50%

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:

  • US has room to grow
  • Borrowing conditions remain tough, credit growth is low.
  • Aussie dollar is high (RDG: really??)
Since inflation has settled down a little, the bank is easing back on the handbrake. That about sums up the general consensus out of the RBA today. I imagine the board minutes will enlighten us a little more in a few weeks. On other best, Melbourne Cup to run shortly…

Statement by Glenn Stevens, Governor: Monetary Policy Decision

RBA Logo

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 4.5 per cent, effective 2 November 2011.

Continue reading RBA drops cash rate to 4.50%

RBA keeps cash rate at 4.75%

RDG: The RBA holds rates, amid global economic uncertainty. Greece announced it may not make it yesterday, and global stock and credit markets are reeling in fear. Ultimately, Australia can only sit idly by, and hope the world keeps upright enough to keep buying our resources, otherwise we might need to start eating home-grown food again.

I have been commenting to my clients that term deposit rates have been in free fall lately, especially over longer terms, with banks fearful they will be caught out when market rates drop.

Statement by Glenn Stevens, Governor: Monetary Policy Decision

RBA Logo

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

Continue reading RBA keeps cash rate at 4.75%

RBA keeps cash rate at 4.75%

RDG: The RBA holds rates, interesting that banks are having a tougher time with credit markets, and our economy is turning into a three speed one, mining flat-out, some services, ok, everything else: hurting. Today’s RBA statement seems like a never-ending story of “ifs”. If the global economy does ok, we will do ok, if the coal mines get cleaned up, we will do better. I will post some more commentary on the housing market in the near future, this has been a good area to follow both media and Government “statements”.

Statement by Glenn Stevens, Governor: Monetary Policy Decision

RBA Logo

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

Continue reading RBA keeps cash rate at 4.75%

RBA keeps cash rate at 4.75%

RDG’s comments: Inflation is still a concern, as prices rise everywhere and people are feeling the pinch. Weather has been the biggest headwind to rates increasing, with the fallout from floods and cyclones having the biggest impact locally. Weather-affected prices are expected to come back down later in the year. Most economists are pegging a rise in the next two months (for what that is worth).

Statement by Glenn Stevens, Governor: Monetary Policy Decision

RBA Logo

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

Continue reading RBA keeps cash rate at 4.75%

RBA keeps cash rate at 4.75%

RDG’s comments: The RBA is watching inflation, our labour market demand is strong, pushing wages up, despite hits from disasters we are still riding the wave to higher consumer prices, and thus, higher interest rates.

Statement by Glenn Stevens, Governor: Monetary Policy Decision

RBA Logo

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

Continue reading RBA keeps cash rate at 4.75%

A flooded economy?

With the majority of our clients in QLD, there will be few reading this that haven’t already been affected in some way by flooding over the past month. This article will try to piece together some of the expected impact to our financial futures, and offers some avenues for assistance, including links to Government payments that are now available. If you are affected or know someone who is, please share this with them.
Continue reading A flooded economy?