Interest Rates Are Staying – For Now
Posted February 4th, 2010
With a widely anticipated interest rate rise tomorrow morning the RBA Board has announced today they are to leave the cash rate unchanged for now at 3.75 per cent. With a growing global economy and and expected global GDP rise during 2010 and 2011, many market analysts predict the growth to be modest – despite the positive signs all round.
Even so positive process is being reported, the going is still tough in some corners of the world. Banks are still vary about handing out credit as many face or did face major losses in the loan sector during the GFC.
The economy in Australia has battled the crisis better than many other economies partially thanks to the stimulus package handed out by the government. With the effects of the stimulus fading on consumer demand our household finances are being supported thanks to a reasonably strong labour market and a recovery of our net worth in general.
The housing industry is reporting increasing demand in the construction sector and spending for public infrastructure is helping to boost demand.
As was expected, inflation declined from the peak in 2008; this was partially helped by a fall in commodity prices late in 2008 and a slowing in private?sector labour costs during 2009.
With a slightly higher raise of the rates than was suggested by the RBA in recent months the Board found it appropriate to keep the cash rate at the current level for the time being.
Source: RBA
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Comparison of our Top Credit Card Offers
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) | |||
|---|---|---|---|---|---|---|
Bankwest Breeze MasterCard | A low interest rate on everyday purchases with a low balance transfer offer | 0% for 6 months (reverts to 10.99% ) | 4.99% for 9 months | $49 | 21.99% |   |
Citibank Clear Platinum Card | A low interest rate offer on balance transfers and purchases | 11.99% | 0% for 12 months with 3% handling fee | $99 | 21.74% | |
St.George Vertigo | An introductory offer on balance transfer and a low annual fee | 13.24% | 0.99% for 6 months | $55 | 21.49% | |
Virgin Flyer Credit Card | Earn 1 velocity point per $1 spent, plus an introductory offer on balance transfers | 20.99% | 1.9% for 12 months | $50 (for first year thereafter $99) | 20.99% | |
Westpac 55 Day Credit Card | No annul fee for the first year with a low rate on balance transfers and purchases | 0% for 5 months (reverts to 19.59% ) | 3.99% for 6 months | $0 annual fee for the first year ($30 thereafter) | 21.49% | |
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