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 🙂

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Barbara has been working with Australian families, couples and singles on their property journey for 18 years. During that time her background in tax and accounting has helped to assist her with investor clients. Some clients are ready to buy and other's require a strategy and years of assistance to get property ready, that's Barbara's strength. Working with people to achieve their goals for the long term. “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 [email protected].