The Reserve Bank had their monthly meeting and have left
interest rates on hold (http://www.rba.gov.au/media-releases/2013/mr-13-23.html).
The notes that follow the announcement had a new comment that “public spending
is forecast to be quite weak”. They also remark that “a lower level of the
exchange rate is likely to be needed to achieve balanced growth in the
economy”. Much as I am hesitant to make any forecasts, I can’t see rates being
lifted while this is the case and while inflation is expected to remain within
target for the next one to two years.
I have received some questions about the relationship between the RBA rate and
the rates that you pay on your home and investment loans, so look out for my
next newsletter which will have some more information for those that are
interested. I love getting questions, so if you have any queries of a general
nature or related to your personal situation, please let me know.
Call or email us today to find out more.