Our February 2012 Newsletter is now out.
In this issue I cover:
- Property Vs. Shares
- House and Land Considerations
- Getting to Know non-Banks
Welcome to our February newsletter,
The cash rate remains the same this month after the Reserve Bank of Australia (RBA) decided the
current rate of 4.25 per cent is “appropriate” for the time being.
The February 7 decision, marking the first Board meeting for the central bank in 2012, followed two consecutive rate cuts in the lead up to Christmas.
While the announcement surprised a few mortgage and property industry pundits, with many economists having expected a 0.25 per cent rate cut, Deloitte Access Economics’ Chris Richardson said he wasn’t surprised to see the Reserve Bank “err on the side of caution”.
“The rate cuts haven’t necessarily stimulated the property market as the RBA would have hoped,” he said. “So the Board may prefer, moving forward, to leave rates on hold and see what happens in Europe.”
RBA governor Glenn Stevens said acute financial pressures on banks in Europe had eased considerably during the latter part of 2011, as a result of the actions of policymakers.
“Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made,” he said.