Aussie Interest Rate Rises to 6.25%

The Reserve Bank of Australia has released its decision today to raise interest rates by 0.25%. Taking the cash rate to 6.25% from the previous 6.00%.

New inflation figures will influence interest rates

The Reserve Bank will release inflation figures in early November and it will be interesting to see if they have fallen below the 4% figure that triggered the previous rate rise. Economic forecasters are saying that a sustained inflation rate of 4% or more will almost certainly be countered with another interest rate rise by the RBA.

Free property market report for July

The Herron Todd White property market report for July 2006 has been released. I find this report to be be invaluable in helping to keep up with the movements in the property market. It provides an indication of where each Australian major city and regional centre is currently placed in the property cycle.

Doom and Gloom is the time to buy

Have you heard this saying-"Buy in gloom-Sell in boom". Well there's a fair bit of gloom around at the moment because of rising interest rates, petrol prices and the Middle East conflict. But the positive side of this is that we should start to see lots of opportunities in the property market. Don't be scared by the newspapers that are saying that property is a bad investment now-they couldn't be more wrong because in my opinion now is the time to buy. When the next boom hits- and it will-you will be very happy you bought in gloom.

The Property Clock

If you want learn how the property cycle works you can start by checking out 'Quartiles' property clock. They also give a basic update on what's happening in the major cities of Australia in terms of capital growth, rents and vacancy rates.

Merry Christmas from the RBA?

Economists are already forecasting another rate rise which would take the cash interest rate up to 6.25%. Trouble in the Middle East and forced inflation from rising petrol prices are providing more reasons for the Reserve Bank to raise interest rates again before Christmas. At the moment the major drivers are most likely to force inflation up and it is already riding at 4% which is out of the 2 to 3% target range.

Bankwest 6.60% interest rate for savings

OK, so mortgage interest rates have risen !! Well interest rates on savings accounts have risen too. So if you have some spare cash parked in a savings account earning almost 0% why not put it in to the Telenet Account at Bankwest that gives you a 12 month introductory rate of 6.60% (at call). They also have a special kids bonus savings account that pays----wait for it---- An amazing 10% interest !!!

5 year fixed interest rate of 6.99% still available

Hot off the press- I have just been informed by lender 'Homepath' (subsidiary of Commonwealth Bank) that their 2, 4 and 5 year fixed interest rates for homeloans are currently set at 6.99%. Be aware that there is no ratelock facility so the interest rate at the time of loan draw down will be the one that applies. Does anyone know of a lower 5 year fixed rate?

Banks begin to follow rate rise

Westpac has been one of the first banks to raise its variable interest rate by 0.25%. Their variable rate now stands at 7.82%. Some lenders have not moved their rates yet so it could be a good time to get in and fix while rates are still historically quite low. Home Path are still advertising a 5 years fixed rate at 6.99% on their website so I am will call them and see if it is still available. Don't forget to check out the comparison rate too. The Cannex site is a good source of information on current loan rates. Check out the infochoice graph to see how rates have moved over the last decade.

Reserve Bank raises cash interest rate to 6%

On 1 August, 2006, the Reserve Bank of Australia voted to raise interest rates by 0.25 of a percent. The RBA trys to keep inflation in the range of 2 to 3% but was forced to raise rates when inflation recently blew out to 4%. Many economists predict another rate rise before the end of the year. If you would like to keep up to date with what's happening with inflation and other economic data you can vist the RBA website at www.rba.gov.au