For a Quote call 1300 793 143
8am-8pm Weekdays, 9am-5pm Weekends
RBA minutes - October 2010
A rate rise was considered on October 5, 2010 minutes from the Reserve Bank meeting reveals.
The RBA said there were arguments for and against a rate hike and that the decision was "finely balanced".
Arguments for rate rise:
A case could be made to increase the cash rate at the current meeting, based on the medium-term inflation outlook and the fact that developments had continued to be broadly consistent with the central forecast scenario.
Arguments against the rise:
The case to wait before making a tightening move was that the economy was still expected to continue growing at trend in the near term, credit growth had softened somewhat and the rise in the exchange rate would, if it continued, effectively be tightening financial conditions at the margin. Moreover, it was still possible that downside risks to global growth could materialise.
The minutes say the board decided to keep the cash rate at 4.5 per cent "for the time being, pending evaluation of further information at the next meeting". That means RBA will wait until the September quarter consumer price index (CPI) data will be released by the Australian Bureau of Statistics (ABS) on October 27. If the figures will be as RBA expected or even better - rate rise in November is imminent.
Related Topics:
© Rate Detective - All Rights Reserved
ABN 47 127 196 712 - ACN 127 196 712
Reproduction in part or whole without written
permission is prohibited.
RateDetective operates under the House Home Loans credit license. License number 364974.
Rate Detective and its advisers operate as authorised representatives of Risk Advice Specialists Pty Ltd ABN 27 153 718 079 Australian Financial Service Licence No. 412709. Rate Detective and its advisers are authorised to advise and deal in Life Insurance, Income Protection, Total and Permanent Disability and Trauma Insurance.
Post new comment