Sep 9

Now that ALP have been returned to power, and the RBA have made a decision not to move interest rates from 4.5%, there is an expectation that the major banks will be reviewing their interest rate position within a matter of days. In fact some may choose to increase interest rates before the end of this week.

It will be interesting to see which one of the big banks will make the first move.

According to Glenn Stevens from the RBA, the Australian economy has been growing at around trend pace. There had been high levels of public spending over the past year and the boosting of incomes due to terms of trade will add to demand over the coming year.
However, Stevens hinted that a rate hike could be on the cards if inflation rises.  In his statement, he warned that, looking through to mid-2011,...

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Sep 8

Economists believe that overall signs of weakness are still present in the Australian Home Loan Sector and as a consequence RBA will need to keep the interest rates at current levels for the moment.

According to the ABS, Australian home loan commitments for owner-occupied housing rose 1.7 per cent in July, seasonally adjusted, to 47,511.

This result was above the average market forecast of a 1 per cent rise in mortgage commitments in the month.