Reserve Bank of Australia meeting minutes suggest another rate drop in 2013

Australian interest rates predicted to fall lower.

Australia's Central Bank, the Reserve Bank of Australia has hinted that they are not done with lowering the official interest rates, and that has caused the Australian DOllar to fall lower.
The theory is that Australia's economy is in transition, as the China mining boom comes to an end, and other industries and sectors need to take up the slack, both in business investment and jobs growth. The easiest path for that to happen is a lower Australian dollar to help local manufacturing compete against cheap imports, and at the same time making Australian exports cheaper and therefore more competitive.
So even though the RBA signalled no immediate rate move down, the currencies markets took early positions and sold the Australian Dollar down.
So the RBA is suggesting it wants the $AU lower, without having to move rates itself.

Quote from the RBA minutes today.
“Members agreed that the bank should neither close off the possibility of reducing rates further, nor signal an imminent intention to reduce rates further,”Interest rates could be lower before the end of the year.

Some experts are predicting the Australian Dollar to be 88 cents by the end of the year, and that there will be another rate cut before Christmas, if the RBA deems that it is necessary to achieve Australian Government policy objectives.
Australia’s currency will weaken to 88 cents by the end of next year, according to the median estimate of analysts surveyed by Bloomberg News. They expect the kiwi to drop to 76 cents.

Mr Mortgage

RBA: Reserve bank keeps rate cuts in reserve

The Reserve Bank of Australia [RBA] in keeping rates on hold this week, with plenty in reserve to continue further easing of monetary policy if and when required.

Interest rate easing and effect lag 

The effects of interest rate reductions can take several months to filter through to a measurable response in the economy of Australia, and this in fact has shown to to true in this cycle of rate reductions.

Leaving Interest rates as is

The RBA Governor, Glenn Stevens, said "It was prudent to leave the cash rate unchanged, but, that there was scope to continue the easing cycle if it was necessary to support demand.

House Building approvals and retail spending are up

Building approvals, consumer confidence and retail spending are improving and retailers have told the RBA that yet to be released spending figures for February would be encouraging.

71,500 new jobs created in February

The RBA is taking the latest employment figures showing 71,500 new jobs were created in February into account.
Whilst its too early too early to tell whether the job market has lifted, that has to be a good number for Australia's Labor Government as well as. Among the triggers that could make the bank cut rates again are a rise in unemployment as the resources investment boom slows, and a further rise in the Australian dollar.

Housing market good news for Home Buyers and Homeowners

Current economic data is now showing improvements in consumer sentiment and retail spending, and buoyancy in the housing market with rising home values and improved sales. This has to give confidence for home buyers and homeowners thinking of selling or moving up.

RBA: Australian Mortgage rates on hold

The Reverse Bank of Australia has just decided in its monthly meeting to keep the official cash rate at 3%.

The RBA in its monthly meeting has decided, as predicted by most financial experts, to keep the interest rates steady for the time being.

The reasons have been muted as low unemployment, and stellar rise in new jobs of over 70,000 new jobs in February, and signs that property prices and home sales are on the rise.

Many were predicting that another .5% in interest rate reductions could be used in the latter half of the year, if needed. Many now say that this may not be required as the economy is great shape.
In fact some are now suggesting that the next rate move may be up!

RBA feels its moves on lower interest rates have started to take effect.