Interest Rate News DEC 2013

Interest rates stay on hold

In the final meeting for the year, the Reserve Bank has decided today to leave the cash rate on hold. The decision comes as no surprise to most as the result was widely expected.

Rates have now been steady for the past 4 months following the August decision by the Bank to cut rates to a 60 year low of 2.5 percent.

Building approvals continue to climb with another solid increase over the month of October. However most of the increase in activity has been through a surge in apartment approvals in Sydney and Melbourne rather than a significant increase in house approvals.

“The latest data continues to provide a mixed and patchy economic landscape with continued uncertainty over the short-term direction of the economy. With a falling dollar the Reserve Bank has decided to again leave interest rates on hold this month although recent statements have indicated growing uncertainty over the effectiveness of current monetary policy settings”, says Dr Andrew Wilson Senior Economist for Australian Property Monitors.

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