RBA Interest Rate Announcement November 2015

The RBA today has decided to leave interest rates unchanged. I read the statement as relatively upbeat which I wasn’t expecting.

Here is the summary of what the RBA said:

  1. The global economy is moving at a moderate pace.
  2. The U.S. Fed is expected to start increasing rates soon.
  3. Australian  economic conditions are moderate.
  4. Inflation is low.
  5. Low interest costs are supporting borrowing and spending.
  6. Investment lending is easing while owner occupied lending has increased.

More details at http://www.rba.gov.au/media-releases/2015/mr-15-20.html

The Big 4 last month increased their variable interest rates by 0.15-0.20% even when the RBA did nothing. Some of the smaller lenders have also raised their variable rates which was more surprising as they didn’t have any changes to their reserves requirements as set by APRA. We will definitely have more interest rate changes from the smaller lenders as we come in to the end of the year.