RBA - Rates still at 1.5%
There were no major surprises on Tuesday's meeting that rates were kept on hold again at 1.50% by the Reserve Bank of Australia. In fact rates have not increased since November 2010. However we have noticed many lenders shifting their fixed rates and variable rates upwards in the last few months, even though there has been no movement from the RBA. We will continue to watch this space as it may signal essentially the end of the downward trend to interest rates. In any case it appears the banks are not so diligent about passing on full rate cuts so some question how effective the RBA approach is going to be over the net 12 months. Keep an eye on your mortgage and if you have questions feel free to give us a call and have a chat about your personal situation.