Interest Rate on Hold - October 2010
Interest Rates on hold!
At its meeting today, the Board decided to leave the cash rate unchanged.
This is great news for homeowners and investors, particularly coming in to spring selling season, who wish to start or increase their property portfolios. Many industry spectators predict interest rates will remain on hold for the remainder of 2010, however this will depend on how the economy performs in the short term and on CPI inflation numbers.
The RBA echoed this view in it comments today: "If economic conditions evolve as the Board currently expects, it is likely that higher interest rates will be required, at some point, to ensure that inflation remains consistent with the medium-term target".