November 2012

Welcome to our November newsletter

Just as Green Moon was a surprise winner on Melbourne Cup Day, the Reserve Bank’s decision to leave rates on hold at 3.25 per cent left many industry pundits shocked and surprised. For the past six years, the RBA has been determined to take some of the limelight from Australia’s race of races by adjusting the cash rate each November. This year however, they have broken tradition and seem happy to leave rates on hold – employing a ‘wait and see’ approach for the next few months. Speaking of the decision, Reserve Bank governor, Glenn Stevens, pointed to early recovery signs in both the European debt crisis and Australia’s lacklustre housing market. “Financial markets have responded positively over the past few months to signs of progress in addressing Europe's financial problems, but expectations for further progress remain high,” Mr Stevens said.

Welcome to our October newsletter 

With the Reserve Bank of Australia (RBA) lowering the cash rate by 25 basis points at its October meeting and fixed rate home loans at a five year low, now could be the perfect time for borrowers and investors to evaluate their position in the property market. The RBA’s decision to lower the cash rate for the first time in four months was unexpected, with many economists expecting rates to stay on hold in October. Reserve Bank governor Glenn Stevens said, “The outlook for growth in the world economy has softened over recent months, with estimates for global GDP being edged down, and risks to the outlook still seen to be on the downside. “Investment in dwellings has remained subdued, though there have been some tentative signs of improvement,” Mr Stevens said. “Interest rates for borrowers have for some months been a little below their medium-term averages
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