11. March 2014 18:21
On March meeting, Reserve Bank of Australia (RBA) released the cash rate on hold at 2.5%. This is a sign that economy shows good signs because construction sector performs well. Mining construction subdued but industrial sector like construction plays a big role to help sustain the recovery. As expected, performance of the construction industry is very strong for a long time, many expects that RBA will cut the cash rate by the end of the year.
According to Alan Oster, Chief Economist at National Australia Bank, “RBA may be forced to cut rates this year because of rising of unemployment and the continued unwinding of the mining investment boom.”
16. January 2014 20:15
According to the Commonwealth Bank Chief Economist Michael Blythe, “The figures from the Australian Bureau of Statistics (ABS) published on Monday meant the Reserve bank would not cut he ash rate during this cycle.” Since interest rate is stagnant, probably house prices continue to rise. But still there is hope that within 2014, interest rate may cut and if that will happen, it will expect to weaken the Australian dollar. RBA considers a lot of factors before cutting rates. Although, housing markets was doing well and it was strengthening but unemployment would continue to rise. We are still optimist about the possible interest rate cut soon.
18. December 2013 18:39
According to the Reserve Bank of Australia (RBA) in the minutes of its December Board Meeting, “It would not close off the possibility of cutting the cash rate again but decided to hold steady at the record low of 2.5% in December to allow previous cuts to continue filtering through the economy.” The RBA still hope that it could possibly another cut in interest rate. Despite, boosting in Business confidence, increase in investment and expecting growth for the following year. Interest rate may still on hold till the end of the year. Some factors responded the lower interest rate especially the housing but are not like the mining investment. Economists are less optimistic about the economic outlook. RBA was open to the possibility of further rate cuts but it is still very mild.
21. November 2013 18:11
Interest rate remains the same with 2.5 basis points. Economists believe that there is no interest rate cut until the year ends. The forecasts are, predicted on a constant exchange rate. But we cannot predict the economy because sometimes it is swinging. But there will be forecasts that there will be a possible cut next year. Will it be possible?
Westpac’s Chief Economist, Bill Evans, after the RBA’s meeting, he sees a possible two more cuts in 2014. According to Bill Evans, the stubbornly high Australian dollar, and a weaker than expected housing led recovery. If the housing market condition strengthens, it associated boost to wealth. Business and consumer confidence should strengthen to sustain the economy into 2014. If it will happen, interest rate may cut and possibly it will drive the housing market to boost.
6. November 2013 17:58
During the Melbourne Cup Day board meeting, Reserve Bank of Australia kept the cash rate at a record low of 2.5%. RBA still consistent with their October decision to leave rates on hold as expected.
According to RBA Governor Glenn Stevens, “Economic growth was still a little bit below trend, but he expects the economy to pick up next year.” Lots of factors why RBA decided to leave interest rate on hold. The currency is higher compared with past a month which drags the economy weaker. The currency needs to be in the level of exchange to help the balance growth in the economy. But December is approaching, we need to be still optimistic and be hopeful that by the end of the year, we will have a better economy.
21. October 2013 17:54
The property market now is swinging and home buyers are more active in the market. House prices and house rent increases. The currencies also become weaker because of manufacturing exporters. Because of these factors, it motivates the basis to cut the interest rate. Last August, RBA left the cash rate to a record low of 2.5%. Will be having an interest rate cut soon?
Last October 1, Reserve Bank if Australia said, “Members agreed that the bank should neither close off the possibility of reducing rates further nor signal an imminent, intention to reduce them.” It shows that there will be a possible interest rate by next month. RBA believes a possibility to have another cut but not yet ready to move immediately. I think consumer confidence and business confidence has already increasing and will drive the growth to sustain.
16. August 2013 18:12
The Reserve bank of Australia has cut the interest rate to a 0.25%. The RBA decided to lower by 25 basis points effective August 7, 2013. Was the interest rate cut appropriate? Will really helps to sustain the growth of the economy?
According to CHCWA Executive officer Barry Doyle, “The Reserve Bank of Australia must set interest rate for the entire country but today’s ABS data demonstrates the flaw in the model.” Western Australia economy remains in very accommodative and the economy has been growing. Australian dollar depreciated but it is possibly help to foster in rebalancing the economy. We still continue to look forward the positive outlook to foster the sustainable growth in demand.
7. August 2013 17:55
According to Finance Minister Penny Wong, “Record low interest rates are a sign the economy is in transition, not that’s it’s in crisis.” Last Tuesday, RBA has a meeting; Interest rate holds and considered certain to cut rates. Will Interest rate goes lower for the coming months? I think for now, it has a distinct possibility of having a lower cash rate. A quite fall of mining influenced why interest rate remains on hold and business confidence is low. Apparently, we still have positive economy and its not far from awful economy.
6. June 2013 18:16
Interest rate uses for monetary policy and influence the cash rate in financial market operations, Reserve Bank is the institutions to decide in dealing the interest rate and last June 4, RBA decided to leave the interest rate on hold during their meeting.
According to Sally Auld, an Interest rate Strategist at JP Morgan, “She is not expecting another interest rate cut until November. That will be pretty dependent on what sort of activity data we see here in Australia over the next month of two and what sort of inflation print we get at the end of July.” The factor influences is the currency level that pressured the RBA to lower the cash rate. The Australian Economy is still struggling at the moment but we need to be optimistic because Economist expected to have interest cut that helps the economy to recover.
3. April 2013 17:55
The Reserve Bank of Australia (RBA) on Tuesday left the country’s key interest rate unchanged at 3% meeting widely held expectations by economists. Since December, interest rate still at 3% and it is still on hold till today.
According to the Central Bank last Tuesday, Global Growth is forecast to be a little below average for time, but the downside risks appear to be reduced,” It has been 3 consecutive months of steady interest rates and economic activity affects why the interest rate on hold. As general, our local economy remains optimistic. Homebuyers are back into the market, confidence level is rising that helps to strengthen the housing market. Indeed, this trend may be the reason why rates are remain steady.