Business

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

finda logo
Featured Real Estate
Cleveland 4163  "FREE" Delivery Within 300kms 9x3m $24,900 10x3 $27,500. Bathroom, bedroom, lounge, kitchen, ...
740 Geiger Road... $450,000 neg
Rural 2 1 3
2 Grantham Scrub... 185,000 NEG
Residential Land With power already to this beautiful block, this could be a terrific ...
10 Regent Court... $91,000
Residential Land This amazing lifestyle block of offers spectacular panoramic views overlooking rural farmland ...

Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.