RBA meeting March 2012: Rates Unchanged - 4.25%

The Reserve Bank of Australia (RBA) has left official interest rates unchanged at 4.25 per cent at its board meeting on March 6, 2012.

This time RBA decision was in line with the market expectations:

  • Recent information confirms the expectation that the world economy will grow at a below-trend pace this year.
  • Europe will remain a potential source of shocks for some time yet
  • Australian economy continues to grow close to trend overall with differences between sectors
  • Labour market conditions softened during 2011 and the unemployment rate increased slightly in mid year
  • CPI inflation has declined as expected and will fall further over the next quarter or two.
  • Interest rates for borrowers have risen slightly, but remain close to their medium-term average.
  • Credit growth remains modest.
  • Housing prices have shown some sign of stabilising recently, but housing market remains soft.
  • The exchange rate has risen over recent months, even though the terms of trade have declined.

With growth expected to be close to trend and inflation close to target, the Board judged that the setting of monetary policy remained appropriate for the moment.

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Published on March 3-th, 2012 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.
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