Archive for RBA

RBA Announcement – June 2015

The Reserve Bank of Australia has made the decision to leave the cash rate on hold at 2.0% for June 2015.

As predicted by the majority of leading economists, the Reserve Bank of Australia has made the decision to leave the cash rate on hold at 2.0% for June 2015.

This decision follows rate cuts in February and May this year which have lowered the cash rate to an all-time low for Australia.

The decision follows pressure on the Reserve Bank to help boost economic growth whilst also keeping house prices in Sydney and Melbourne under control.

With the cash rate at an all-time low, and interest rates also extremely low, now is the time to review your home loan to make sure you are using the most suitable financial solution for your personal circumstances.

Reserve Bank cuts interest rates to fresh record low of 2 per cent

At its 5th May meeting, the RBA decided to lower the cash rate to 2 per cent. With interest rates continuing to fall, it’s an ideal time to review your loan. Talk to your bank if you’d like to look at what new options are available.

Three of the big four banks have kept some of the Reserve Bank’s 0.25 per cent rate cut to themselves, with both NAB and Commonwealth Bank reducing their standard variable mortgage rate by 0.2 per cent and Westpac by 0.22 per cent.

But Westpac and CBA have raised some of their deposit rates. Term deposit rates on CBA’s eight month and Westpac’s nine month term deposits have risen to 3.05 per cent. CBA also raised rates on its “GoalSaver” account to 3.05 per cent.

All three have passed on the full 0.25 per cent cut to business customers, a further signal that fierce competition for mortgages and regulator pressure to curb home lending to investors is causing the banks to shift their growth plans to business.

Three of the big four banks kept some of the RBA’s rate cut for themselves, with two raising deposit rates, NAB will cut its standard variable rate to 5.43 per cent, its lowest level in 37 years, on May 13.


Rates on hold because of the upcoming election? That would be my guess…

The Reserve Bank of Australia has left the interest rates at a record 2.5 pc low with rates cut eight times since November 2011 in a bid to ease the transition to a less mining-dependent economy and prevent too much of a surge in unemployment.

It is my opinion that the rates were left on hold because of the upcoming federal election with voting this Saturday 7th August. So don’t forget to head down to your local voting centre and make your vote count on election day!

Polling places near Sorrento WA 6020

  • Sacred Heart College (Moore)Hocking Parade, SORRENTO
  • Sorrento Primary School (Moore)Elfreda Ave, SORRENTO
  • Hillarys Primary School (Moore)Lymburner Dr, HILLARYS
  • South Padbury Primary School (Moore)Warburton Ave, PADBURY
  • Marmion Primary School (Moore)Cliverton Ct, MARMION
  • Duncraig Primary School (Moore)Roche Rd, DUNCRAIG
  • Padbury Primary School (Moore)MacDonald Ave, PADBURY
  • St Marks Anglican Community School (Moore)St Mark’s Dr, HILLARYS
  • Poynter Primary School (Moore)39 Poynter Dr DUNCRAIG, DUNCRAIG
  • Glengarry Primary School (Moore)Doveridge Rd, DUNCRAIG

Not in Sorrento and need to find a polling place near you? Head to the Australian Electoral Commission website and just put in your suburb to find out where you can go.

May the best party win!

RBA alert Rates to stay on hold

The Reserve Bank of Australia has decided to keep the cash rate ON-HOLD today in their monthly meeting – meaning that home owners will have to face another month of interest rates at their current levels.

This time last year the rates were at 3.5% which puts the current rate now at an historic low.

The Australian dollar dropped after the announcement, and is buying 91.9 US cents and is a huge difference as you can see from the table below showing that in the past year it has dropped from from a high of 1.05 US cents.

What effect do you think will happen to the Australian Economy or even on your own personal economy , I’d love to hear what my readers think about it?

Sorrento Living US Dollar Exchange Rate

Interest rates below 3 per cent since it began setting monetary policies in 1990

In an attempt to counter slowing growth in the country’s mining sector, the Reserve Bank of Australia announced a decision to lower the cash rate by 25 basis points, effective 8 May 2013.

With a record low of 2.75%  the NAB was the first of the big four banks to lower its standard variable home loans. It cut the rate by 25 basis points to 6.13 per cent per annum.

Commonwealth Bank also passed on the full rate cut this afternoon, lowering its standard variable home loan rate to 6.15 per cent with effect from May 13.

Westpac lowered its rates just before 5pm today, bringing its standard variable mortgage rate down by 25 basis points to 6.26 per cent, with effect from May 20.

After NAB and CommBank’s moves to pass on the 0.25 basis point cut in full, Westpac said they had put their interest rates under review. ANZ Bank will make a decision on interest rates on Friday as part of its regular review.

The cut would be welcomed by families and by small businesses and would provide a boost to other areas of the economy and help sustain long-term growth.

Lowest Interest Rate for Australia since Global Financial Crisis in 2009

For those who aren’t already aware of what’s going on in the Finance Sector the RBA Board decided to reduce the cash rate by 25 basis points to 3.0 per cent, effective 5 December 2012 which is the lowest it has been since the height of the global financial crisis in 2009.

This means that mortgage payments will be down and you will have more money to spend on your family at Christmas or put into your savings to help save for that trip you have wanted to go on for so long.

Have you ever wondered what the rest of the world’s interest rates are compared to Australia’s? Thought about making a scene change and moving to a new country?

Here is a graph that shows other countries Interest Rates.

Sorrento Living World Interest Rates Comparison

The Reserve Bank of Australia finally cuts interest rates to 3.25% the lowest in 3 years

The Reserve Bank of Australia decided to finally cut interest rates at their official meeting, lowering the cash rate by 0.25 basis points to 3.25% – the lowest in 3 years.

Despite the Reserve Bank delivering an early Christmas present, only the Bank of Queensland have moved .20 with the other big banks still in discussion. Should the banks decide to pass the cut the decision will see repayments on the average mortgage of $300,000 drop by almost $50 a month.

Take a look at the Interest Rates from January 1992 to October 2012.  What are your thoughts about the decision?

Australia Interest Rates January 1992 to October 2012