RBA Shift to Normal Rate Setting

We all know that Reserve Bank cut Interest Rates this past month. The minutes of the Reserve Bank board meeting confirms that they are concerned and focused about the strength of the global economy. The Reserve Bank was focused on getting interest rates back to a more normal setting. It is clear now that the Reserve Bank Board members have certainly become more concerned about the global economic outlook, focusing on heightened “risks to the global economy”, and Reserve Bank is focused on a shift to more “normal” financial conditions. The mortgage rate is still above “normal” and central; banks expected mining investment to increase and non-mining sector was expected to grow below trend. The Reserve Bank Board seems focused on shifting to a more neutral setting, the rate will further cut and variable mortgage rate is still above neutral. We do hope that Reserve Bank will come up a good decision to make investors invest and would have fairly decision in Interest Rate.