[frame_right]
[/frame_right]RBA Decision December 2011
For the second time in over 2 years the Reserve Bank has decreased the interest rates by 0.25% to 4.25%.
After reading the report based on the global markets, the slowing growth and resources demand, there has been some noticeable decreases in commodity prices, which is taking pressure off the CPI inflation rates.
The RBA has taken into consideration that there are a number of countries also relaxing the monetary policy, although the end of year inflation was higher than expected. However they concluded that due to the current decline in the credit market a further rate cut was viable.
This rate decrease will see us into 2012 with the next rate decision in February, leaving time for the European countries to hopefully find an achievable resolution to their situation.
Rates summary 2011
Initial claims at the start of the year were anticipating interest rates to be around 8.00% due to high inflation and natural disasters. We have actually ended the year around an average rate of 6.50%, providing the rate cut is passed on. This is a great result and will no doubt provide some much needed confidence to the market.
It will be interesting to see if all the banks pass this entire rate decrease on. I’m sure they will be all over the media if they don’t.
[/frame_right]RBA Decision December 2011
For the second time in over 2 years the Reserve Bank has decreased the interest rates by 0.25% to 4.25%.
After reading the report based on the global markets, the slowing growth and resources demand, there has been some noticeable decreases in commodity prices, which is taking pressure off the CPI inflation rates.
The RBA has taken into consideration that there are a number of countries also relaxing the monetary policy, although the end of year inflation was higher than expected. However they concluded that due to the current decline in the credit market a further rate cut was viable.
This rate decrease will see us into 2012 with the next rate decision in February, leaving time for the European countries to hopefully find an achievable resolution to their situation.
Rates summary 2011
Initial claims at the start of the year were anticipating interest rates to be around 8.00% due to high inflation and natural disasters. We have actually ended the year around an average rate of 6.50%, providing the rate cut is passed on. This is a great result and will no doubt provide some much needed confidence to the market.
It will be interesting to see if all the banks pass this entire rate decrease on. I’m sure they will be all over the media if they don’t.
