Tuesday, September 4, 2012

Interest Rates Steady in September

The Australian Reserve Bank has decided today not to move interest rates. The Bank mentioned various global factors that indicate a softening of the world markets. Commodity prices have fallen sharply in recent weeks and the "terms of trade peaked a year ago and have declined significantly since then".

The Bank also stated that most indicators show that economic growth has been "running close to trend, led by very large increases in capital spending in the resources sector". The carbon tax rated a mention as there were observations that the CPI was starting to go up however inflation remained under control. As a result, they decided not to change the interest rate, leaving the cash rate again at 3.5%.

This should be welcome news for those currently looking for a home and starting to investigate home loans.

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