…and the dollar surges
Despite concerns over the strength of the Australian dollar (now 0.9296) and a potential property bubble, the Reserve Bank of Australia has, moments ago, announced that it will be keeping the cash rate on hold at 2.5 per cent.
This comes as no surprise as concerns about the strength of the Australian economy still linger, now that the mining investment boom is essentially over. While rising house prices is something the RBA really doesn't want to encourage, the general consensus is that record low interest rates will continue for just a little while longer. Some are expecting rates to be higher by Christmas, or even earlier. We'll keep you posted.
(Rick Maggi, Westmount. Financial Solutions.)