Are Interest Rates Stable?

In September, we have seen that the RBA had the official interest rate unchanged at 4.75%, lots of factors really affects the Interest Rate and its monitored and RBA announces the cash rate change. Many of us, ask in our mind, Are Interest Rates Stable?

The RBA chose to keep rates on hold despite speculation that rising of inflation could stir an increase. The official interest rate is still at 4.75%. A poll of 21 economists by Bloomberg shows those surveyed believed interest rates will again stay on hold. Inflation is one factor in why interest rates being kept on hold because due to seasonal prices gains in alcoholic drinks, tobacco, and automotive fuel, consumer prices rose slightly and it shows great impact for inflation.

ANZ’s head of Australian economics, Katie Dean, says risks to growth in the global economy have intensified. “Those increasing downside risks are suggesting that interest rates here should actually be cut some time over the next couple of months”, she added.