It was no surprise that the Reserve Bank of Australia has decided to leave interest rates on hold at 4.25% today.
This comes on the back of RBA governor Glenn Stevens recently telling the parliamentary committee that interest rates ‘were about right’.
As Michael Pascoe wrote in today’s Sydney Morning Herald, “The verdict is that the central bank has clearly said it’s not going to try to stimulate the economy unless there are clearer signs that it needs stimulating.”
Indeed, the Australian economy remains the envy of the world.
With the Government now getting back to the business of running the country, and improvement in the global economy (thanks to the lessening of the debt crisis in Europe), this is reassuring for all mortgage holders.
More good news.
There’s more good news – a better than expected jobs report in January, with an unemployment rate of just 5%. In fact, the ANZ jobs advertisements data released yesterday reported that seasonally adjusted job ads were at their highest level since November 2008.
With the Reserve Bank comfortable with the state of the economy and banks expected to keep interest rates on hold, it’s ‘steady as she goes’.
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
NEED HELP LISTENING TO MICHAEL YARDNEY'S PODCAST FROM YOUR PHONE OR TABLET?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.