No move on cash rate

By |

The RBA has again left the cash rate untouched, and rates may stay on hold longer than previously expected.

At its July board meeting yesterday, the Reserve Bank indicated that slowing employment growth, modest credit demand and softening asset prices as reasons for a continued cash rate freeze. The Bank also noted that temporary price shocks from natural disasters earlier in the year are expected to dissipate, leaving inflation close to the Bank's target range over the next 12 months.

Stevens conceded that recovery following this year's floods and cyclones was proceeding slower than expected, and that growth for 2011 was now not expected to be as strong as previously predicted.

However, the Bank has questioned whether moderate growth of global economies and inflationary pressures will continue. In a statement following the decision, RBA governor Glenn Stevens stated that a number of other countries have tightened monetary policy. Stevens pointed to Australia's high terms of trade and growth in national incomes.

"Investment in the resources sector is picking up strongly in response to high levels of commodity prices and the outlook remains very positive. A number of service sectors are also expanding at a solid pace," he said.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : darlington , the basin , chermside , bendigo , wallsend

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here