With inflation at the higher end of the Reserve Bank of Australia’s desired levels (currently at 2.9%), a surge in house prices in March, worldwide GDP growth revised upwards, and Australia’s terms of trade rising more than expected, the RBA in their monthly meeting on the first Thursday of the month have once again increased interest rates by 25 basis points. This means that the basic cash rate now stands at 4.5%.
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The Reserve Bank of Australia (RBA) has once again raised its official cash rate by a further 25 basis points to 4.25%, its fifth increase in its past six meetings (since October 2009). Governor Glen Stevens stated that the view of the RBA is that the global economy has continued to improve and domestic activity is recovering whilst the bank seeks to ensure that Australia’s economic expansion remains on track without an outbreak of inflation.
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