RATES TO STAY

Written on the 18 February 2010

RATES TO STAY

THE Reserve Bank of Australia (RBA) has made an unexpected move to leave interest rates unchanged today at 3.75 per cent.

RBA governor Glenn Stephens says the decision was made because lenders have been charging above the cash rate and the effects are still uncertain.

“Lenders have generally raised rates a little more than the cash rate over recent months and most loan rates have risen by close to a percentage point,” says Stephens.

“Since information about the early impact of those changes is still limited, the board judged it appropriate to hold a steady setting of monetary policy for the time being.”

But in his statement issued today Stephens hinted at further rate rises if the economy continues to recover as expected, as interest rates to most borrowers are still lower than average.

“If economic conditions evolve broadly as expected, the Board considers it likely that monetary policy will, over time, need to be adjusted further in order to ensure that inflation remains consistent with the target over the medium term.”

Suncorp Bank executive manager Tim Buckett says if the economy continues to strengthen the RBA will likely move rates back to normalised levels over the next six to eight months.

“The low rates seen throughout 2008-09 during the economic crisis were simply not sustainable in the long-term for Australia,” he says.


Latest News

PETER BEATTIE: WE CAN TURN A $1B 'PROFIT' ON COMMONWEALTH GAMES IF BUSINESS GETS ON BOARD

PLAYING host to a major sporting event is often regarded as a guaranteed way to lose money, but the 'face'...

SUPERLOOP BREAKS NEW GROUND TO LAUNCH LATEST FIBRE NETWORK

SUPERLOOP'S already vast fibre cable network just got bigger through the addition of TKO Express, the only fib...

SA GOVERNMENT APPOINTS ESCAPENET TO DELIVER ULTRA HIGH-SPEED INTERNET

THE South Australian government has appointed Adelaide business EscapeNet to deliver a $7.6 million ultra high-spe...

CAIRNS COUPLE DIVE INTO THE SHARK TANK AND CONVINCE FELLOW 'BOATIE' GLEN RICHARDS TO WORK WITH THEM

THEY'RE a husband and wife team with an invention that can help save the Great Barrier Reef, and lives, and Pe...

Related News

CAIRNS COUPLE DIVE INTO THE SHARK TANK AND CONVINCE FELLOW 'BOATIE' GLEN RICHARDS TO WORK WITH THEM

THEY'RE a husband and wife team with an invention that can help save the Great Barrier Reef, and lives, and Pe...

DOWNER EDI GRABS MORE THAN 50 PER CENT STAKE IN HOSTILE TAKEOVER TARGET SPOTLESS

DOWNER EDI Limited (ASX: DOW) now holds more than 50 per cent of Spotless Group Holdings Limited's (ASX: SPO) sha...

STRUGGLING TEN NETWORK IS 'CASH POSITIVE' AND CAN BE SAVED, ADMINISTRATOR SAYS

THE ADMINISTRATORS of the Ten Network say the struggling broadcaster has cash to continue operating and have also ind...

METCASH NET PROFIT FALLS 20 PER CENT, ANNOUNCES CEO WILL STEP DOWN IN 2018

FOOD and grocery giant Metcash has announced its full year net profit has fallen more than 20 per cent and its CEO Ia...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter