April Interest Decsion

April 4, 2017 3:26 pm

Interest Rates are on hold again!

The Reserve Bank of Australia (RBA) has left the official cash rate on hold at 1.5 percent. The RBA is said to be stalling for more time before
raising rates due to the economy improving short-term, housing prices rising steadily, and a high debt-to-income ratio. However, the need to
kerb the loss of a triple-A credit rating and credit risk may prove too strong to hold back over coming months.

Australian housing market’s renewed growth continues to put pressure on monetary policy. As a result, Australian banks are raising rates independently
to kerb credit rating loss with Standard & Poor’s – the world’s leading credit agency.