Interest Rates On Hold

In a shock move the Reserve Bank of Australia have left interest rates on hold for February.

Economists are scratching their heads as 24 out of 27 predicted that rates would fall to 4.00% from 4.25%.

Retailers are also disappointed as they thought that a reduction in rates would lead to greater consumer spending.

There was no guarantee that the lenders were going to pass on the full interest rate cut, if at all as. There were rumblings around the industry that the banks were not going to pass on the full rate cut. NAB made a pledge that they will have the lowest standard variable rate amongst the big banks but with all the discounting going on they may not have the best deal.

We will just have to wait until next month to await the RBAs decision.

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