RBA Raises interest rates due to a positive outlook for the Australian economy
Posted October 6th, 2009
The Reserve Bank of Australia has raised it’s interest rates, making Australia the first developed nation to reverse protective economic measures that were put in place as a result of the Global Financial Crisis.
The RBA raised the official cash rate to 3.25%, which for the average Australian with a $300,000 mortgage, will add an extra $40 in mortgage repayments per month.
Not all is negative about the announcement. The fact that the Reserve Bank has raised interest rates is a sign that they have a positive outlook for the Australian economy. In fact, as a result of the news the Australian dollar soared, with investors gaining confidence in the Australian market.
”The global economy is resuming growth,” RBA Governor Stevens said. ”With economic policy settings likely to remain expansionary for some time, the recovery will likely continue during 2010 and forecasts are being revised higher.”
There is another RBA meeting on Melbourne Cup day, and Credit Suisse are expecting there to be another rate rise announced.
Stay tuned for all the latest RBA announcements and credit card news.
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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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