Rates on hold again
Rates on hold again
Posted on Tuesday, March 05 2013 at 2:06 PM
The Reserve Bank of Australia (RBA) has left the official cash rate unchanged at three per cent, following its monthly meeting today.
The Reserve Bank of Australia (RBA) has
left the official cash rate unchanged at three per cent, following its monthly
meeting today.
Slightly stronger retail sale figures in
January coupled with a more confident outlook for the housing sector are
expected to have contributed to the decision.
Like most pundits, RP Data research
director Tim Lawless says he’s not surprised by the outcome of the RBA’s
meeting.
“The housing market is clearly on a
recovery path, with capital city dwelling values having risen by 3.3 per cent
since reaching what appears to be the bottom of the market last year,” Lawless
says.
In addition, new jobs data shows a decent
jump in the number of jobs being advertised and consumer confidence is now back
at levels not seen in two years.
Despite the decision, some commentators
expect banks to move independently and lower home loan interest rates.
1300HomeLoan managing director John Kolenda
says borrowers should anticipate variable rate movements as lenders fight for a
share of the tight home finance market. Fixed loan rates are already at
all-time lows.
“The banks have no issues at the moment with cost of
funds and we can see them cutting their rates as they aggressively compete for
home finance business,” Kolenda says.
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