Reserve Bank Interest Rate Announcement

October 5, 2010 § Leave a comment

It’s good news for mortgage holders today – the Reserve Bank has opted to keep rates on hold.

Although there has been talk of rate rises in recent weeks, the RBA has adopted a wait-and-see approach for another month and left official rates at 4.5 per cent. 

“Many people were bracing themselves for bad news today,” says Domain.com.au blogger Carolyn Boyd. 

Each 0.25 per cent interest rate rise adds another $50 to the monthly cost of an average mortgage. Australian mortgage holders are already paying about $300 more per month in repayments than they were a year ago. 

Boyd says there is a chance of one or more interest rate rises before the end of the year. Mortgage holders should prepare now and start paying a little extra off their loans each week or month. 

The property market has remained steady in recent weeks and there has been a slower than usual start to the spring selling season. It is expected the property market will remain balanced through spring. 

Source: domian.com.au

Advertisements

CBA joins calls for an October rate rise

September 23, 2010 § Leave a comment

 

The nation’s largest home lender has joined a growing number of banks in shifting expectations for an interest rate rise to October.

But the Commonwealth Bank‘s chief economist Michael Blythe does not expect the Reserve Bank will lift the cash rate in three consecutive monthly moves that characterised its first two stages in winding back monetary policy from the “emergency” rate three per cent.

“The timing of a subsequent move will depend on the reaction to the October rise and the subsequent flow of data,” Mr Blythe said on Thursday announcing his bank’s changed rate call.

But he does expect the cash rate will eventually peak at six per cent following further rate increase through 2011.

Read more…

Missing: spring investors

September 13, 2010 § Leave a comment

With Australia’s residential property sector finally coming off the boil, investors should be set to head back into the market to take advantage of easing demand and weakening buyer competition.  

But while owner occupiers and first home buyers are fast disappearing from the market, the latest figures from the Australian Bureau of Statistics show that investors aren’t exactly jumping in to take their place.

It’s a sign of just how strong Australia’s property market became over the last 18 months that investors are now finding it a bit of a struggle to see a profitable way in.

Read more…

Look who’s moving in

September 2, 2010 § Leave a comment

Docklands will experience an influx of corporate heavyweights in the coming months with the 717 Bourke St building now complete.

The Office of the Financial Ombudsman will be the pioneer of the building, moving 300 staff into level 11 and half of level 12 during September and will take up 4000sqm of office space.

BP Australia will join the Financial Ombudsman in November and is set to move in on Melbourne Cup weekend.

Insurance company Chartis, formerly AIG insurance, will also move in during November along with Telstra, which will stagger its call centre move over the full month.

Channel Nine has the signage rights to the building and will move in towards Christmas. This means it will join Channel 7, The Age and 3AW in Docklands – Melbourne’s new media hub.

Read more

DFO to be broken up and sold: report

August 23, 2010 § Leave a comment

Debt-ridden Direct Factory Outlet (DFO) will reportedly be broken up and sold store by store, with the proceeds expected to go towards servicing its $1 billion bank debt.

Read more

Banks agree to DFO lifeline

August 20, 2010 § Leave a comment

The Direct Factory Outlets (DFO) retail chain has avoided receivership after a deal was reached between its parent company and banks.

Developer Austexx, which owns the chain, has been negotiating with a consortium of four banks since Monday. It owes the banks $450 million.

ACCC chairman Graeme Samuel is believed to have a holding in the owner of DFO through a blind trust and was not aware of how much debt the company was in.

It is understood a deal was reached last night after approval for more credit was given by all parties.

Read more

Where Am I?

You are currently browsing entries tagged with Financial services at JC Street's StreetBlog.