RBA interest rates stay at 4.5 percent Sept 7 2010
Good news borrowers! The Reserve Bank Board have decided to keep the cash rate target at 4.50%.
A snapshot of their reasons include:
The global economy grew faster than trend over the year to mid 2010, but is expected to ease over the coming year.
- The global economy grew faster than trend over the year to mid 2010, but is expected to ease over the coming year.
- China growth is moderating and their policies are less accommodating
- Bonds and commodity prices are lower than expected
- Business credit has stabilised and there is a greater willingness to lend
- Credit outstanding for housing has slowed a little over recent months.
- The demand for labour has firmed over the past year in line with improving growth.
- Through 2011, inflation is likely to be in the top half of the target zone’
- CPI inflation will probably be just above 3% for a few quarters due to the impact of the tobacco tax changes.
Feel free to call us any time on 1300 288 874 to discuss how this affects you and your finances.