RBA may keep rates on hold: Norris

RBA may keep rates on hold: Norris

by 0 comments

The decision by three of the majors to move out of step with the Reserve Bank could mean the official cash rate will be kept on hold when the bank meets in February, according to CBA’s chief executive Ralph Norris.

Speaking to Sky News, Mr Norris said Westpac’s decision to raise rates by 20 basis points above the cash rate may prompt the Reserve Bank to keep interest rates on hold.

"I think given the fact that there have been interest rate increases over and above the (official cash rate) then I think it is a possibility that we might not see an increase in February," he said.

"I don't know whether they think that we're actually doing their work for them but I think they would obviously take into account the situation in regard to interest rates and current economic activity."

Following the Reserve Bank’s decision to raise the official cash rate by 25 basis points in December, CBA lifted its standard variable rate on home loans by 37 basis points, ANZ lifted its rate by 35 basis points while NAB matched the Reserve.

The decision by three of the majors to move out of step with the Reserve Bank could mean the official cash rate will be kept on hold when the bank meets in February, according to CBA’s chief executive Ralph Norris.

Speaking to Sky News, Mr Norris said Westpac’s decision to raise rates by 20 basis points above the cash rate may prompt the Reserve Bank to keep interest rates on hold.

"I think given the fact that there have been interest rate increases over and above the (official cash rate) then I think it is a possibility that we might not see an increase in February," he said.

"I don't know whether they think that we're actually doing their work for them but I think they would obviously take into account the situation in regard to interest rates and current economic activity."

Following the Reserve Bank’s decision to raise the official cash rate by 25 basis points in December, CBA lifted its standard variable rate on home loans by 37 basis points, ANZ lifted its rate by 35 basis points while NAB matched the Reserve.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent's commitment to clientele built him a 25k-strong client base

In this episode of Secrets of the Top 100 Agents, host Tim Nearly talks to RT Edgar’s Glen Coutinho who ranked number six in this year’...

View all podcasts

How effective are testimonials as a marketing tool?

Not effective at all
Somewhat effective
Very effective
They are the most effective tool there is
Do you have an industry update?