RBA leaves rates on hold at record low of 2.75%
As predicted by most economists, the Reserve Bank of Australia has left the cash rate on hold for the month of June. This follows last month’s decision to cut rates to a record low of 2.75%.
Although many economic indicators have generally improved over the last month, the stock market still remains volatile. Furthermore, a decrease in unemployment rates and the Australian Dollar has contributed to a more positive outlook on the global economy.
“If the Australian dollar remains well off its peaks, as we are forecasting, the RBA may not need to cut rates further to support growth,” says Paul Bloxham, Chief Economist at HSBC Australia and New Zealand.
Dr. Andrew Wilson, Senior Economist for Australian Property Monitors says, “Home buyers thrive on low interest rates but the key to sustained growth in housing markets is a healthy economy and low unemployment".
For a great deal on your home loan contact us today on (03) 5560 3900.
We have a fantastic switching offer where we will pay your change over costs PLUS give your $500 cash* just for switching your home loan to South West Credit click here for more details. Or if its a new loan, check out our Rate Crusher Home Loan with rates starting at just 5.25%# click here for more details.
See RBA Governor Glenn Stevens’ full statement below:
“At its meeting today, the Board decided to leave the cash rate unchanged at 2.75 per cent.
Information becoming available since the previous meeting is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined from their peaks but, overall, remain at high levels by historical standards. Inflation has generally moderated over recent months and monetary policy has been eased further in a number of countries.
Financial conditions internationally are very accommodative. Despite the recent rise in sovereign bond yields, funding conditions for sovereigns, well-rated corporates and most financial institutions remain very favourable.
In Australia, growth over the past year has been a bit below trend. The outlook published by the Bank last month is for a similar performance in the near term and recent data are consistent with this. The unemployment rate has edged higher over the past year and growth in labour costs has moderated. Inflation has been consistent with the medium-term target and is expected to remain so over the next one to two years.
The easing in monetary policy over the past 18 months has supported interest-sensitive areas of spending and has been reflected in portfolio shifts by savers and higher asset values. Further effects can be expected over time. The pace of borrowing has thus far remained relatively subdued, though recently there have been some signs of increased demand for finance by households. The exchange rate has depreciated since the previous Board meeting, although, as the Board has noted for some time, it remains high considering the decline in export prices that has taken place over the past year and a half.
At today's meeting the Board judged that the easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target. It decided that the stance of monetary policy remained appropriate for the time being. The Board also judged that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand.”
* Terms and conditions apply, click here for more details.
# Terms and conditions apply, contact one of our Lending Consultants on (03) 5560 3900 for full details.
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The South West Credit Board of Directors, last night approved a reduction to its Home Loan product range of 0.25%, effective 1st June, 2013.
Along with this rate announcement, South West Credit is launching a fantastic switching offer. Simply switch your home loan to South West Credit and we’ll cover your change over costs* plus give you $500 cash!
Contact us today on (03) 5560 3900 to talk to one of our Lending Consultants or click here for more information.
*Terms and conditions apply: Minimum loan amount $150 000. Some institutions charge discharge fees or other costs to change your loan. SWC will reimburse you for these fees and all of its own and government charges up to a collective maximum of $1000.
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Internet Banking Upgrade
You may notice a few minor changes to our Internet Banking site today, this is due to an upgrade South West Credit completed on Friday 24th May 2013.
The upgrade was carried out to increase security and provide an overall faster more effective banking system for our members to transact through.
If you have any questions in regards to this please feel free to contact us on (03) 5560 3900.
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South West Credit is encouraging its customers to familiarise themselves with the necessary tools to safely communicate and transact online.
We are reminding consumers that there are very easy measures that should be taken to help keep information secure and reduce the risk of fraudulent activity.
The Stay Smart Online website lists a series of tips for everyday Australians to take to protect themselves from illegal activity.
The steps to improve online security are:
- Install and update your security software and set it to scan regularly
- Turn on automatic updates on all your software, particularly your operating system and applications
- Use strong passwords and different passwords for different uses
- Stop and think before you click on links and attachments
- Take care when buying online - research the supplier and use a safe payment method
- Only download "apps" from reputable publishers and read all permission requests
- Regularly check your privacy settings on social networking sites
- Stop and think before you post any photos or financial information online
- Talk with your child about staying safe online, including on their smart phone or mobile device
- Report or talk to someone if you feel uncomfortable or threatened online - download the Government's Cyber safety Help Button
South West Credit places a high priority on anti-fraud measures and welcomes National Cyber Security Awareness Week as an important opportunity to provide education and advice to reduce this form of crime.
The Stay Smart Online website www.staysmartonline.gov.au has further information about what the community can do to help reduce cyber crime and details of activities planned to mark Cyber Security Awareness Week.
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