RBA meeting May 2011: Rates Unchanged at 4.75%

As widely expected, the Reserve Bank of Australia (RBA) has left official interest rates unchanged at 4.75 per cent at its board meeting on May 3, 2011.

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

  • The global economy is continuing its expansion.
  • Australia's terms of trade are reaching higher levels than assumed a few months ago.
  • The natural disasters over the summer have reduced output in some key sectors, but overall growth is likely to be at trend or higher.
  • Growth in employment has moderated and further growth in employment most likely will be at a slower pace than in 2010.
  • Overall credit growth remains quite modest.
  • CPI inflation will be close to target over the year ahead, as the temporary price shocks dissipate over the coming quarters.

So the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.

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 May 5-rd, 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