The Reserve Bank of Australia unexpectedly increased its benchmark interest rate on concern stronger growth will cause inflation to accelerate, driving the nation’s currency toward parity with the U.S. dollar. Governor Glenn Stevens raised the overnight cash rate target a quarter point to 4.75 percent in Sydney, saying the economy has “relatively modest amounts of [...]

Read Full Post »

MOUNTING evidence of accelerating growth among major Asian trading partners is shortening the odds of a rate rise tomorrow. JPMorgan economists led by Stephen Walters added their voices over the weekend to predictions that the Reserve Bank would jack up official rates by 25 basis points when it meets tomorrow. Stoked by a resources industry [...]

Read Full Post »

Glenn Stevens was out last week sounding loud alarm bells about where interest rates are headed. It seems that as the economy belts full steam ahead into what Stevens has termed the biggest resources boom since the late 19th Century, interest rates are only headed one way, and that is up. Of course, that is [...]

Read Full Post »

Mortgage holders can breathe easy for another month after the Reserve Bank today decided not to increase interest rates. In a sign that the Reserve Bank thinks the economy is bubbling along nicely, it opted to keep rates on hold at 4.5 per cent. Each 0.25 per cent interest rate rise adds another $50 to [...]

Read Full Post »

The Reserve Bank of Australia decided to hold its cash rate steady for the third straight month, offering businesses and households a reprieve. The decision comes after recent economic data showed relatively stable inflation, weakening household consumption and a cooling real estate market. As widely expected, the overnight cash rate was held at 4.50%. RBA [...]

Read Full Post »

A private gauge of Australian inflation slowed during July, adding more weight to suggestions the Reserve Bank will keep the official interest rate at 4.5% at tomorrow’s meeting. The TD Securities-Melbourne Institute revealed today its consumer price inflation gauge rose 0.1% in July, down from June when it rose by just 0.3%. The annual pace [...]

Read Full Post »

When yours truly was on Seven’s Sunrise back in May it was acknowledged by both David Koch and myself that the Reserve Bank of Australia (RBA) would be unlikely to lift rates that day, with the knowledge that things were looking worse in Europe and there were already signs of a slowdown on housing here. [...]

Read Full Post »

The Reserve Bank has opted to keep interest rates steady at its board meeting today. It was a widely expected move and will give mortgage holders another welcome breather from the six rate hikes they have endured since September last year. "It looks as though the earlier interest rate hikes are already biting," says Domain.com.au [...]

Read Full Post »

The current housing market is awaiting the savvy buyer. With the consecutive rises by the reserve bank, European PIGS Economy treat, Revolving door Labour Prime Minister and now threat of a coming election. If you have cash – that is no bank finance required – you are KING. The last three real estate contracts written, [...]

Read Full Post »