On Tuesday the 3rd of December 2013 at 2.30pm the Reserve Bank of Australia (RBA) announced that the interest rate will remain on hold at 2.5%. This is in line with forecasts from economists and comes at no surprise.
According to ABC, in a statement released after the RBA board meeting, Governor Glenn Stevens stated “there has been an improvement in indicators of household and business sentiment recently, but it is still unclear how persistent this will be. Public spending is forecast to be quite weak “. Interest rates are likely to stay at a record low until at least February as the board does not usually meet in January.
This is good news for families over the Christmas period and leaves them with some extra cash in their pockets and encourages spending. With the interest rate remaining low, this impacts individuals in a range of forms including; mortgages, credit cards, savings and investments.
With public spending predicted to be weak, this is also good news for retailers who are relying on the holiday period to boost their businesses after a decrease in spending. According to news.com.au, Australians are expected to spend nearly $30 billion over Christmas. Hopefully, with the interest rate remaining low, this will stimulate spending and give the economy the boost that it needs at this point in time.
If you are interested in knowing more about the interest rate announcement and how it affects you and your taxes, please do get in touch with the team here at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
