RBA keeps interest rates on hold

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’.