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.
