HOME OWNERS can breath a sigh of relief with RBA deciding to leave interest rates at 4.5% for another month. However now is not the time to get too complacent.
RBA has considered the financial markets situation in Europe in making their decision to leave rates on hold.
But data released yesterday showing three per cent-plus annual inflation, solid demand for workers in an already strong labour market, and a record number of monthly car sales will give Reserve Bank of Australia (RBA) board members something to think about in August.
The annual reading of inflation is certainly outside the 2% – 3% range acceptable to RBA.
A number of lenders including the Bank of Queensland have said that they may need to increase interest rates outside of any increases by the RBA due to growing costs of wholesale funding.