QTPA Member Alert | RBA Leave Interest Rates On Hold (5/7/2012)

RBA Leave Interest Rates On Hold

The Reserve Bank of Australia decided not to touch the interest rate dial at their official meeting today, keeping the cash rate unchanged at 3.50%.

This decision to leave rates on hold today, lies in the wake of the two previous rate cuts in May (0.50%) and June (0.25%) and can largely be attributed to the recent spate of positive data which may have altered their outlook on the local economy.

The RBA have made their decision based on a number of key indicators such as positive GDP and employment figures which surprised the market in June thus not warranting further economic stimulus.

Whilst the official interest rate is still at 3.50% – the majority of mortgage holders in Australia are sitting idle on their home loans with a standard variable rate of about 6.9% set by their bank.

Jim Vaughan

Chief Executive Officer