RBA meeting March 2011: Rates Unchanged at 4.75%

As expected, the Reserve Bank of Australia (RBA) has left official interest rates unchanged at 4.75 per cent at its board meeting on March 1, 2011.

The decision to keep the official cash rate on hold today met the expectation of financial markets:

  • The global economy is continuing its expansion (especially Asian region),
  • Australia's terms of trade are at their highest level, but household sector continues to save,
  • Overall credit growth in Australia remains quite subdued,
  • Labor market is firm,
  • Inflation is consistent and within 2-3 per cent target.

So the Board judged that the current mildly restrictive stance of monetary policy remained appropriate in view of the general macroeconomic outlook.

The market is forecasting there will be no official rise in interest rates for the next few months as Australia continues to battle the effect of a "two speed economy" - the powerful resources boom is being offset by weakness in the retail market. However there is still a possibility the commercial banks could move independently and raise mortgage rates out of step with the central bank...

Please fill out the form on this page to find out which Mortgage Lender in Australia offers the best Home Loan following this RBA decision...

Get your quotes now

What to find out more? Enquire now

Published on March 3-st, 2011 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
Enquire about Home Loans
Please enter the estimated value of the property

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.

Related Topics