Tuesday 04 Sep 2012
In a widely expected move, the Reserve Bank has opted to keep interest rates on hold at 3.5 per cent today. The decision comes as inflation remains reasonably steady and after the property market has shown tentative positive signs heading into spring. "There was very little chance of the Reserve Bank cutting rates today given that the effects from earlier cuts are still flowing through to the economy," says Domain property expert Carolyn Boyd. In the property sector, auction clearance rates are up on the same time last year, providing vendors with hope of a more positive spring selling season. Since November last year, official interest rates have fallen 1.25 per cent, from 4.75 per cent.