Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

RBA minutes signal further rises to come

Staff Reporter 3 minute read

Rates look certain to rise again in March and again throughout 2008, with minutes from February's RBA Monetary Policy Meeting revealing that the outlook for inflation has deteriorated further than anticipated.

The minutes from the meeting released yesterday made known that the RBA board seriously considered lifting rates by 0.5 per cent earlier this month, rather than 0.25 per cent.

The members of the RBA’s board considered the larger move on the grounds that “the inflation outlook had deteriorated and the risk of inflation expectations becoming dislodged had increased.”

According to the RBA, the decision to vote in favour of a smaller rise of 25 basis points was made with the wellbeing of borrowers in mind.

Advertisement
Advertisement

There was concern that home buyers had been slapped with an additional 90 basis points in just nine months – some of which were independent of RBA’s monetary policy.

“Members noted that an argument in favour of a rise if only 25 basis points was that the level of rates faced by borrowers had already risen somewhat over the summer, independently of policy action,” the board’s minutes said.

Published: 20-02-08

RBA minutes signal further rises to come
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

PROMOTED CONTENT


default

 

more from the adviser
Michael Russell MoneyQuest Brokerage head calls out ‘unacceptable’ turnaround delays

It is “unacceptable” that turnaround times in branches can be...

gentlmen handshake Ex-Time Home Loans director partners with AFG

The aggregator has partnered with former Time Home Loans director...

farmer ta 34% of farmers eyeing raised business investment

Roughly one-third of Australian farmers expect to increase their ...