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RBA Alert – Interest Rate Announcement
June 3, 2014
Steven’s takes the Sport out of Interest Rate watching…
The Reserve Bank of Australia has again decided to leave
interest rates at present levels following their official meeting today. This decision keeps the cash rate unchanged at 2.50%, which will please one third of Australian households that are currently paying down their mortgage.
This decision of course was no surprise, and it can now be said that the head of the RBA – Glenn Steven’s is now taking the ‘Sport’ out of Australia’s fascination with the RBA cash rate decisions with a mandate of clearer communication to the markets. In fact, the Interest Rate SWAPs market priced in literally ‘no chance’ of a change today, even Australian sports betting agency, Sportsbet.com.au was only offering punters a minimum 1.001% return on a “no change” result today, which I’m sure didn’t tempt many people!
In the short term, the RBA are clearly applying their ‘neutral bias’ policy to facilitate of “a period of stability” to our economy. In addition, some air has been released from the ‘housing bubble’ discussion when a leading data house confirmed yesterday that the Australia housing market had peaked and is now beginning to cool, with a 1.9% reduction in the national price average during the last quarter, all of which is ‘normal’ in property cycle behaviour. Interestingly though, of the economists surveyed 100% believed that the next interest rate move would be upwards.
For Australian consumers, right now still represents a good time to benefit from a competitive home loan – there are some incredible FIXED RATE Loans currently being offered which provide opportunity to save on your home loan, so click here to speak with a Rates Direct financial specialist today.