Tags: interest rates
This week Australian home owners have been offered some reprieved in the lead up to Christmas as the Reserve Bank of Australia has decided to keep interest rates on hold, with the official cash rate remaining at 4.75 per cent.
The RBA’s decision has no doubt been applauded by home and business owners around the country, particularly with the financial pressure of Christmas and the school holidays fast approaching.
We have seen some mixed economic data recently and given this, I believe the RBA’s decision was sensible. Raising interest rates at this crucial stage would undoubtedly have negative knock-on effects, not only for the property industry, but for several other industries within Australia.
Both the growth of Australia’s property market and the wider economy need to be encouraged, and holding the official cash rate will assist this growth.
Recent reports have also suggested that interest rates may remain on hold…
It came as a surprise to many, myself included, but earlier this week the Reserve Bank of Australia granted a reprieve to Australian families by leaving interest rates unchanged for the fifth month in a row. The central bank left its key cash rate at 4.5 per cent, defying popular belief that it would increase to 4.75 per cent.
I think the RBA’s decision was wise and will be welcomed by home owners and businesses around the country.
Those with a typical mortgage of $300,000 are already paying $300 a month more than they were this time last year, due to six consecutive interest rate rises in early 2010, so this week’s decision has undoubtedly come as relief for many.
This decision has also offered some reprieve for those in the property industry as rising interest rates have significant knock-on effects in the Australian property market. Our property market has…
The Reserve Bank of Australia late yesterday made the decision to hold an interest rate rise. I think this was a wise decision, and will be welcomed by many families and businesses.
Due to previous rate rises, banks have increased their interest rates by several points. The RBA is aware of this, and ultimately we haven’t seen the full effects of these raises yet. Therefore, to ensure the market is able to withstand another raise, the RBA needed to make the decision they did today.
The property market currently has consistent momentum, and being a significant industry in Australia, this momentum must be fostered.
Click here to view Governor Glenn Stevens’ statement on the decision.