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.