Guest News Posted February 3, 2010 Report Share Posted February 3, 2010 The West Australian Council of Social Service has welcomed the move by the Reserve Bank to leave interest rates on hold. The official interest rate remains on hold at 3.75% . Economists had been predicting the cash rate would rise by a quarter of a percentage point to 4%t. But, the Reserve Bank Governor Glen Stevens said interest rates would remain steady, after three increases in a row late last year. In a statement on the decision, Mr Stevens says the global economy is growing but expansion is likely to be modest in the major countries. He said domestic economic conditions have been stronger than expected but information about the impact of the previous rate rises is limited. Mr Stevens said the board considered it appropriate to hold rates steady for the time being. The WA council's Sue Ash says the announcement will be a welcome relief to families. "We are still wanting to make sure that the banks don't unilaterally increase the interest rates even though the reserve bank hasn't increased the cash rate," she said. Property outlook The WA branch of the Master Builders Association says there has never been a clearer indication now is a good time to invest in property. The Association's Michael McLean says the rates announcement is welcome news. "As far as the building industry goes, it's a welcome decision," he said. "We were hoping that rates would be kept on hold because the housing industry is undergoing a modest recovery." Quote Link to comment Share on other sites More sharing options...
Guest Bob Tonnor Posted February 3, 2010 Report Share Posted February 3, 2010 The West Australian Council of Social Service has welcomed the move by the Reserve Bank to leave interest rates on hold. The official interest rate remains on hold at 3.75% . Economists had been predicting the cash rate would rise by a quarter of a percentage point to 4%t. But, the Reserve Bank Governor Glen Stevens said interest rates would remain steady, after three increases in a row late last year. In a statement on the decision, Mr Stevens says the global economy is growing but expansion is likely to be modest in the major countries. He said domestic economic conditions have been stronger than expected but information about the impact of the previous rate rises is limited. Mr Stevens said the board considered it appropriate to hold rates steady for the time being. The WA council's Sue Ash says the announcement will be a welcome relief to families. "We are still wanting to make sure that the banks don't unilaterally increase the interest rates even though the reserve bank hasn't increased the cash rate," she said. Property outlook The WA branch of the Master Builders Association says there has never been a clearer indication now is a good time to invest in property. The Association's Michael McLean says the rates announcement is welcome news. "As far as the building industry goes, it's a welcome decision," he said. "We were hoping that rates would be kept on hold because the housing industry is undergoing a modest recovery." It may be wise to apply a touch of caution when purchasing any new property in this particular financial climate, http://www.abc.net.au/news/stories/2010/02/02/2808326.htm Bob Quote Link to comment Share on other sites More sharing options...
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