Reserve Bank Interest Rate Announcement

March 1, 2011 § Leave a comment

It was a case of steadying the ship as expected when the Reserve Bank met today and decided to keep interest rates on hold at 4.75 per cent.

The move comes on the back of comments by the Reserve Bank Governor Glenn Stevens last month that rates would stay on hold in the near future. 

“Mortgage holders will be breathing a sigh of relief,” says Domain.com.au blogger Carolyn Boyd. “Even though today’s decision looked like a forgone conclusion, there is always an element of doubt.” 

Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage

The official interest rate is currently 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders

By keeping rates on hold the Reserve Bank has presented borrowers with an opportunity to beat their lenders at their own game, and pay more off their mortgages before the next rate rise, which is now expected to be quite late in the year. 

Source: Domain.com.au

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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

Home prices down ahead of likely rate rise

October 1, 2010 § Leave a comment

 

Home prices fell in August amid expectations price growth for the year will grind to a halt if the Reserve Bank lifts interest rates.

The median national home prices dropped 0.2 per cent in August, seasonally adjusted, following a 0.4 per cent increase in July, RP Data-Rismark figures show. The national city median dwelling price fell to $457,000 in August from $465,000 in July.

In unadjusted terms, capital city home prices were flat in August, after a 0.1 per cent increase in July.

House prices rose for 17 consecutive months to June when rising interest rates and falling new home sales and loans combined to slow growth. The Reserve Bank, which started lifting rates in October 2009, is expected to lift rates again next month, with the market tipping a two-in-three chance of a 25 basis point rise. That would move the official cash rate up to 4.75 per cent from 4.5 per cent.

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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.

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