Finance Broker Australia

Today the Reserve Bank decided to lower the cash rate by 0.25%.

This announcement follows the lowering of fixed interest home loan rates at least once, and in some instances twice, by many lenders over the past month.

The RBA media release is copied below for your convenience.

STATEMENT BY GLENN STEVENS, GOVERNOR
MONETARY POLICY
At its meeting today the Board decided to lower the cash rate by 25 basis points to 7.0 per cent, effective 3 September.

STATEMENT BY GLENN STEVENS, GOVERNOR MONETARY POLICY

At its meeting today, the Board decided to leave the cash rate unchanged at 7.25 per cent.

Inflation in Australia has been high over the past year in an environment of limited spare capacity and earlier strong growth in demand. This was evident again in the most recent CPI data. In these circumstances, the Board has been seeking to restrain demand in order to reduce inflation over time.

MEDIA RELEASE
No: 2008-10
Date: 1 July 2008
Embargo: For Immediate Release

STATEMENT BY GLENN STEVENS, GOVERNOR
MONETARY POLICY
At its meeting today, the Board decided to leave the cash rate unchanged at 7.25 per cent.

Inflation in Australia has been high over the past year in an environment of limited spare capacity and earlier strong growth in demand. In these circumstances, the Board has been seeking to restrain demand in order to reduce inflation over time.

Date: 3 June 2008

STATEMENT BY GLENN STEVENS, GOVERNOR MONETARY POLICY

At its meeting today, the Board decided to leave the cash rate unchanged at 7.25 per cent.

Inflation in Australia has been high over the past year in an environment of limited spare capacity and earlier strong growth in demand. In these circumstances, the Board has been seeking to restrain demand in order to reduce inflation over time.

May 06 2008

Reserve Bank Australia Board meeting Media Release

STATEMENT BY GLENN STEVENS, GOVERNOR

MONETARY POLICY

At its meeting today, the Board decided to leave the cash rate unchanged at 7.25 per cent.

Inflation in Australia has been high over the past year, with the CPI rising by a little over 4 per cent and underlying measures at a similar pace. Price rises were widespread, in an environment of limited capacity and earlier strong growth in demand.

The days of low interest rates are over

Inflation is a long, not a short, game

Leading independent economic forecaster and industry analyst, BIS Shrapnel, forecasts inflation will remain above three per cent for the rest of 2008, through 2009 and into 2010. However, according to BIS Shrapnel the Reserve Bank of Australia’s (RBA) tightening of the cash rate should be sufficient to bring it back to three per cent by 2010, BIS Shrapnel believes the days of low interest rates are over and the RBA will continue to struggle to control inflation for the next decade.

Tuesday 1st April 2008

Reserve Bank of Australia leaves interest rates on hold for now.

At its meeting today, the Board of the Reserve Bank decided to leave the cash rate unchanged at 7.25 per cent.

The cash rate has been increased twice this year in an effort to limit inflation. More information and the entire release is available at the RBA Australia website.

Australian bank home loan 3 year fixed interest rate history

The Reserve Bank of Australia statistics show fixed interest housing finance data from September 1990 trough to Feb 2008.

The average interest rate for a 3 year fixed interest rate home loan interest rate over this time frame has been 8.40 percent.

The lowest rate has been 5.90 percent and the highest 3 year fixed interest rate housing loan was 15.5 percent in September 1990.

Australian banks home loan interest rate history

Did you know that the average bank variable interest home loan interest rate rate over the past 59 years in Australia is 8.87 percent? (source Reserve Bank of Australia standard variable interest rate home loans, Jan 1959 to Feb 2008)

The same standard variable home loan interest rate was above 9 percent from July 1974 through to August 1993 when the rate dropped to 8.75 percent for 1 year then did not return to below 9 percent again until November 1996.

Reserve Bank Board Meeting
The Reserve Bank Board will meet on the following days, with a media release published at 2.30 pm:

• Tuesday, 5 February 0.25 percent rise
• Tuesday, 4 March 0.25 percent rise
• Tuesday, 1 April Cash rate unchaged
• Tuesday, 6 May Cash rate unchaged
• Tuesday, 3 June Cash rate unchaged
• Tuesday, 1 July
• Tuesday, 5 August
• Tuesday, 2 September
• Tuesday, 7 October
• Tuesday, 4 November
• Tuesday, 2 December