RBA leaves rates on hold

The RBA acknowledged the higher funding costs for domestic money lenders but reiterated that these costs were not exceptional and remain close to the long term average.
The RBA acknowledged the higher funding costs for domestic money lenders but reiterated that these costs were not exceptional and remain close to the long term average. Kieran Salsone

THE Reserve Bank of Australia (RBA) has decided to leave the official cash rate unchanged at 4.25%.

A statement released by RBA Governor Glenn Stevens stated the decision was highly influenced by the international economy, with Europe's economic growth expected to be sluggish but predictable.

"Several European countries will record very weak outcomes, but the US economy is continuing a moderate expansion," Stevens said.

China's lower than normal growth forecast was also a determining factor.

Stevens was guardedly upbeat about the health of the domestic economy.

"Most information on the Australian economy continues to suggest growth close to trend overall, with differences between sectors and considerable structural change," he said.

"Labour market conditions softened during 2011 and the unemployment rate increased slightly in mid year, though it has been steady over recent months.

"CPI inflation has declined as expected and will fall further over the next quarter or two."

The RBA acknowledged the higher funding costs for domestic money lenders but reiterated these costs were not exceptional and remain close to the long term average.

The decision to keep the official interest rate steady does not give any indication as to what Australian money lenders will do with their own variable interest rates.

Topics:  cash rate, glenn stevens, interest rates, rba



Local Real Estate

Featured Real Estate
IMAGINATION AND DESIRE... $307,000
House 4 2 2
GET READY HERE COMES... Offers over...
House 3 1 2
WANT MORE? Offers over...
Unit 2 1 1
LOCATION & STREET APPEAL... $282,000
House 3 1 2
SOLID COSMETIC... $239,000
House 3 1 1
Spacious Family Home $475,000
House 4 2 5
PERFECT BLOCK FOR THE... $ 265,000
Residential Land Don't miss out on the opportunity to own an outstanding 4341m2 flood ...
CLASSIC COUNTRY CHARM offers over...
House 4 3 2
ITS HOME AT FIRST... $295,000...
House 3 1 4
Last Block of Land Like... Offers Above...
Residential Land Are you wanting to build you dream home but can’t find a ...

Featured Jobs

finda logo

Ipswich jobs listed daily

Featured Jobs
Team Leader Ipswich Full Time
EMPLOYMENT... St George Full Time
YOUTH WORKERS Toowoomba Full Time
IPSWICH STATE HIGH... Ipswich Full Time
TRUCK DRIVER Gatton Full Time


Local Partners

LATEST DEALS AND OFFERS

Job Listings

Search for your next job now.
Learn More

Cars For Sale

Find cars for sale online now.
Learn More

Property Listings

Search for a property online right now.
Learn More

Local Profile

Stay Connected

Get the news as it happens, in your inbox

You can change the newsletters you are subscribed to when you edit your profile

Edit Profile


Special Offers

Latest deals and offers

View today's ePaper!

Read the digital edition
Learn More

Horoscopes

Virgo

Your strong stamina and libido could be a problem for your partner or spouse as you demand more than they can give. This requires finding an...

read more

Marketplace

Special Offers & Promotions

Compare & Save