Proloan

Feb 2012 - RBA cash rate unchanged at 4.25 per cent

Tue, 09 Aug 2011 09:30:00 +1000

At its meeting today, the Board decided to leave the cash rate unchanged at 4.25 per cent.

Information becoming available since the December meeting confirms that economic conditions in Europe were weakening late last year, with risks still skewed to the downside. Reflecting this, most forecasters have lowered their forecasts for world GDP growth this year to a below trend pace. That said, recent data from the United States suggest a continuing moderate expansion after a soft patch in mid 2011. Growth in China has moderated as was intended, but on most indicators remained quite robust through the second half of last year. Conditions around other parts of Asia have softened. Commodity prices declined for some months to be noticeably off their peaks, but over the past couple of months have risen somewhat and remain at quite high levels.

The acute financial pressures on banks in Europe were alleviated considerably late in 2011 by the actions of policymakers. Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made. Financial market sentiment, though remaining skittish, has generally improved since early December. Share markets have risen and term funding markets have re-opened, including for Australian banks, albeit at increased cost compared with the situation prevailing in mid 2011.

August 2011 - The Reserve Bank has opted to keep rates on hold at 4.75 per cent for another month.

Mon, 04 Jul 2011 11:00:00 +1000

It's good news for mortgage holders today - the Reserve Bank has opted to keep rates on hold at 4.75 per cent for another month.

The move comes on the back of recent comments by the Governor of the Reserve Bank that consumers had become cautious and were spending less and saving more.

"Whether we were going to get a rate rise was a bit touch and go this month," says Domain.com.au property expert Carolyn Boyd. "On one hand inflation came in higher than expected last week, but on the other there's still plenty of uncertainty in the global economy and locally, retailers are complaining of very tough conditions."

Looking over the next year, it is difficult to tell where rates are headed with economists divided about whether they will head up, or down, or remain stable.

But Boyd says for mortgage holders, it's always safer to err on the side of caution and assume that rates could go up. "With that thinking in place, it's a good idea to pay a bit extra off your mortgage if you can," she says.

Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.

June 2011 - Interest rates steady at 4.75%

Tue, 23 Sep 2008 15:20:00 +1000

At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
The global economy is continuing its expansion, led by very strong growth in the Asian region, though the recent disaster in Japan is having a major impact on Japanese production, and significant effects on production of some manufactured products further afield. Commodity prices have generally softened a little of late, but they remain at very high levels, which is weighing on income and demand in major countries and also pushing up measures of consumer price inflation. In response, a number of the countries with stronger expansions have been moving to tighten their monetary policy settings over recent months. Overall, though, financial conditions for the global economy remain accommodative. Uncertainty over the prospects for resolution of the banking and sovereign debt problems in Europe has increased over the past couple of months, which has been adding to financial market volatility.