With the Australian Bureau of Statistics’ Producer Price Index figures coming in lower than expected, the chance of the Reserve Bank of Australia increasing interest rates in August has decreased with inflation likely to fall within the target 2-3 percent range tomorrow.
Westpac’s Melbourne Institute Leading Index has peaked, but will remain well above the long term trend of 3 percent over the next three to nine months, triggering fears of a rate rise in August.
The Reserve Bank of Australia’s decision to hold interest rates at 4.5 percent is welcomed by home owners still struggling after the sharp increases in interest rates earlier this year.
The Reserve Bank of Australia has decided in it’s monthly board meeting today to leave interest rates on hold at 4.5 percent as it waits on second quarter inflation data from the ABS.
The Reserve Bank of New Zealand today increased the Official Cash Rate by 25 basis points to 2.75 percent, the first increase in interest rates for New Zealand since 26 July 2007.
Westpac–Melbourne Institute’s Consumer Sentiment Index slumped a further 5.7 percent in June after falling 7 percent in May, with interest rate pressure starting to mount on consumer’s confidence.
Mortgage owners can breathe a sigh of relief with the Reserve Bank unlikely to raise interest rates above the current 4.5 percent in the RBA’s monthly board meeting tomorrow.
With the Reserve Bank increasing interest rates to 4.5 percent today, is this the last interest rate increase this year? Language in today’s official statement by Glenn Stevens suggests it might be.
The Reserve Bank is likely to increase rates for the sixth time in seven months at its monthly board meeting next Tuesday analysts predict, after inflation data came in higher than expected.
The Reserve Bank of Australia has signalled that its policy of aggressive interest rate changes over the past six months is nearing its end, with interest rates approaching ‘normal’ levels.
