Reserve Bank of Australia keeps cash rate at 1.75%

by | Jun 7, 2016 | Uncategorized

The end of the financial year is nearly upon us, and the Reserve Bank of Australia has just announced the outcome of its board meeting. The Reserve Bank of Australia has decided to leave the official cash rate at 1.75%. In making this decision the RBA resisted the temptation to lower rates further despite Australia’s low inflation rate which has dropped below their target range of 2 – 3%. Better than expected GDP figures, albeit strongly driven by exports, appear to have influenced the Reserve Bank to take a patient approach for the time being. Even though the cash rate has remained unchanged, it’s still wise for us to talk to ensure you still have the appropriate financial solution for your current circumstances. Source: New...

Reserve Bank of Australia drops cash rate to 1.75%

by | May 3, 2016 | Uncategorized

Today, as the end of the financial year draws closer, the Reserve Bank of Australia has announced the outcome of its board meeting and it has decreased the cash rate by 25 basis points. The official cash rate is now 1.75%. In taking this decision it appears the Reserve Bank has reacted to concerns around the relative strength of the Australian Dollar and the impact this is having on exporters and tourism, talk of a slowing housing market and new data showing inflation has dropped below their target range of 2.5 – 3%. The market is speculating that lenders may not pass the decrease on in full, citing increased funding and regulatory costs. Therefore a fresh round of competition is likely to be sparked amongst lenders so it is a great time for us to review current finance arrangements. How does this impact the average mortgage holder? Here is a… Source: New...