What will the RBA do with rates next week?

Writen by: on April 24, 2012



The next meeting of the Reserve Bank of Australia board is happening in only a weeks time. There is much talk about a rate cut – so what did the board minutes reveal?

“The Board had eased monetary policy late in 2011. Since then members had lowered their assessment of the pace of growth somewhat. If slower growth in demand could be expected to result in a more moderate inflation outcome, then a case could be made for a further easing of monetary policy.”

http://www.rba.gov.au/monetary-policy/rba-board-minutes/2012/03042012.html

This reveals a trend in stable to lower inflation will result in a possible 25 basis points next week.

For those households who are currently on a variable rate, why not use a rate cut to make additional repayments to your loan and reduce the loan term. If rates are cut next week and then passed on by your lender, leave your repayments the same. Small changes can have a big impact over the term of your loan.

Happy rate watching 🙂

Written by

A qualified tax accountant and business specialist, Barbara brings a unique skill set to her clients as a finance broker. Barbara’s desire to work with people and help them achieve their goals is what initially led her to the finance industry over eight years ago. She has a genuine desire to share her expertise and experience with clients while simultaneously supporting charitable organizations and community events. Barbara’s favorite saying is: “The real secret of happiness is not what you have or what you receive; it’s what you share.” You can find her on Google+ and facebook or write to her at barbara@financinghope.com.au.