Finance

In a bid to determine whether or not Australia’s lenders were appropriate to move their rates independently of the cash rate, the Reserve Bank of Australia has launched an investigation into the true cost of funds.   Read more

The interest rate ‘hold’ decision today marks ten straight months of flat rates; the most stable interest rate environment for five years. Anyone would be forgiven to raise an eyebrow at that; the spectre of an interest rate rise has been lurking since at least March when inflation once again moved above 3%.  Read more

The Reserve Bank Board Meeting for August 2011

• RBA left the cash rate at 4.75%
• The Board is concerned about the pickup in underlying inflation
• A Rate rise was considered
• The Board is looking for an easing in financial market nerves and  improvement in domestic non-mining economic data

Picking the right time to fix is always hard, especially when Westpac's Chief Economist, Bill Evans, has predicted a 1.00% rate cut by December 2012. As the looming RBA rate hikes seemed to subside, fixed interest rates on home loans have begun to fall. The gap between Standard Variable Home Loan Rates and Fixed Home Loan Rate has substantially narrowed over the past 6 months.  Read more