Interest Rates

Great News…

The Reserve Bank has decided to leave interest rates on hold!  At it’s
meeting today, the Board decided to leave the cash rate unchanged at 4.75
per cent.

Economists are divided as to whether rates will go down in the near future
or remain at the current rate, good news is that none at this stage are
anticipating a rise.

Conditions in global financial markets have continued to be very unsettled
with uncertainty increasing about both the prospects for resolution of the
sovereign debt and banking problems in Europe, and the outlook for global
economic growth.  While temporary impediments that had contributed to a
slowing in growth in some countries over recent months are lessening, recent
data suggest a continuing period of soft economic conditions in both Europe
and the United States.  Moreover, the uncertainty and financial volatility
have reduced confidence, which could result in more cautious behaviour by
firms and households in major countries.