Interest rates hit 53 year lows

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The Reserve Bank Board has cut interest rates by 25 basis points to 2.75 per cent. Equivalent official interest rates were last at these levels in 1959/60.The next RBA Board meeting is on June 4 2013. The Reserve Bank has adopted the global central bank manta of “doing whatever it takes” to get the economy

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CommSec Investor Snapshot: Interest rates are low, but how low?

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Reserve Bank Board makes its decision today: Most economists expect no change in interest rates. How low are interest rates? Currently the official cash rate stands at 3.00 per cent – equalling lows set from April-October 2009. But the cash rate is largely at these lows because banks haven’t been in a position to fully

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One-minute update: subdued business inflation paves way for a rate cut

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The broad measure of business inflation – the producer price index (PPI), or final stage prices, – rose by 0.3 per cent in the March quarter to stand 1.6 per cent higher than a year ago. What do the figures show?  The Producer Price Index (PPI), or final stage prices, rose by 0.3 per cent

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Lack of building raises possibility of an interest rate cut

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Dwelling approvals fell by 5.5 per cent in March, after rising by 3.0 per cent in February. Approvals are up 3.9 per cent over the year. House approvals fell by 4.1 per cent in March (private sector up 0.4 per cent). ‘Lumpy’ apartment approvals fell by 7.7 per cent after rising by 1.4 per cent

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Reserve Bank: Watch, wait, analyse

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The minutes of the April 2 Reserve Bank Board meeting concluded: “Overall, recent data suggested that interest-sensitive parts of the economy were responding to the historically low levels of lending rates and it remained likely that this had further to run.” What do the Minutes reveal? “Overall, recent data suggested that interest-sensitive parts of the economy

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Interest rates: stability reigns

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The Reserve Bank Board has left the official cash rate at 3.00 per cent for the fourth straight month. The next RBA Board meeting is on May 7 2013. The Reserve Bank is becoming more confident of stronger investment outside the mining sector: “While the near-term outlook for investment outside the resources sector is relatively

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AMP Bank reduces interest rates on standard fixed term home loans

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AMP Bank has reduced its interest rate for its one year standard fixed term home loans by 50 basis points to 4.99 per cent per annum. Interest rates have also been cut for the two and three year standard fixed term home loans:               The interest rate reduction excludes

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Savers & borrowers cheer stable rates

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The Reserve Bank Board has left the official cash rate at 3.00 per cent for the third straight month, so both borrowers and depositors have reason to cheer another month of stable rates.  An easing bias remains firmly in place: “The inflation outlook, as assessed at present, would afford scope to ease policy further, should

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High Aussie dollar has led to lower interest rates

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The Reserve Bank Governor has delivered testimony to the House of Representatives Economics Committee. The Governor says that the economy in 2012 was growing close to trend or average but “the economy has entered 2013 at a pace a little below that”; inflation is low; the job market is balanced; housing activity is improving and

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RBA: Comfortably on the interest rate sidelines

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Minutes of the February Reserve Bank Board meeting suggest Board members were very comfortable to keep interest rates on hold. Reserve Bank Board members discussed the improving global economic conditions with a particular focus on China and the resulting boost in commodity prices. “A wide range of indicators showed that growth in the Chinese economy

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