Katrina Parrington

Mortgage & Finance Broker, Elders Home Loans – Northern Territory – P. 8932 8900

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  • Elders Home Loans

  • Katrina Parrington

    I am a long term Centralian resident with more than 18 years experience in the financial services industry. Initially, in Real Estate in Adelaide before pursuing a career with Elders Insurance Alice Springs and lending roles with major banking institutions where I gained extensive experience in Home Loans and Commercial Lending here in the Alice and in Darwin.

    I have a unique set of skills that ensures I understand your lending needs and can provide you with professional advice and personal service.

    Tel: 08 8953 8800
    email: katrina.parrington@eldershomeloans.com.au

Rates on hold

Posted by Katrina Parrington on February 7, 2012

The current mildly restrictive stance of monetary policy remains “appropriate”, the Reserve Bank has claimed.

At its monthly board meeting today, the Reserve Bank decided it was prudent to leave the cash rate on hold at 4.25 per cent after dropping the cash rate twice in two months at the end of last year.

While the announcement will no doubt shock a few industry pundits, with many economists pencilling in a 25 basis point rate cut in February, Deloitte Access Economics Chris Richardson said he wasn’t surprised to see the Reserve Bank “err on the side of caution”.

Last week, Mr Richardson told The Adviser that the sticky tape keeping Europe together was holding up quite well, thus eliminating the need for an immediate rate cut.

“The rate cuts haven’t necessarily stimulated the property market as the RBA would have hoped. So the Board may prefer, moving forward, to leave rates on hold and see what happens in Europe,” he said.

Speaking about the rate announcement, governor Glenn Stevens said the acute financial pressures on banks in Europe were alleviated considerably late in 2011 by the actions of policymakers.

“Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made. Financial market sentiment, though remaining skittish, has generally improved since early December. Share markets have risen and term funding markets have re-opened, including for Australian banks, albeit at increased cost compared with the situation prevailing in mid 2011,” he said.

“With this in mind, the Board judged that the setting of monetary policy was appropriate for the moment. Should demand conditions weaken materially, the inflation outlook would provide scope for easier monetary policy.”

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