Home owners received some good news today with the Reserve Bank leaving interest rates on hold again. The official cash rates remains at 4.75 per cent where it has been since November 2010. This decision by the RBA was widely expected amongst economists.
New data released today shows Australia’s first trade deficit in 11 months, giving the RBA even more reason to keep rates on hold.
The following graph shows movement in the RBA cash rate since January 1990, compared with average bank standard variable rates over the same period.
Currently standard variable rates for most banks are around 7.8% with various discounts on offer depending on loan size, security position and strength of client.