RBA Interest Rate Announcement March 2017
The RBA today has decided to leave interest rates unchanged. This announcement was pretty much the same as last month.
Here is the summary of what the RBA said:
- The global economy has improved in recent months.
- China particularly had stronger growth due to spending on infrastructure and property.
- Australia’s business and consumer confidence are at, or above, average.
- Resource exports are improving growth prospects.
- The labour market is still mixed. Expect labour conditions to improve.
- Inflation is quite low and expected but expected higher later this year.
More details at http://www.rba.gov.au/media-releases/2017/mr-17-06.html
Most lenders continue to increase their fixed rates and investment rates. Some lenders have also increased their owner occupied rates out of step with the RBA which isn’t changing rates currently. The increases are for similar reasons given last year when most lenders increased their variable rates due to “funding pressures”. One of the benefits of a fixed rate loan is that these increases can’t be passed on until then end of the fixed rate period.