Home owners thought they dodged a bullet on February 2nd when the National Reserve Bank kept interest rates on hold at 3.75%, but in their March 2nd meeting the RBA decided to raise the cash rate to 4.00%, which adds an average of $50 a month to mortgage repayments around Australia.
In a statement made by Glenn Stevens on the RBA website, he writes that, "in Australia, economic conditions in 2009 were stronger than expected, after a mild downturn a year ago. The rate of unemployment appears to have peaked at a much lower level than earlier expected. Labour market data and a range of business surveys suggest growth in the economy may have already been at or close to trend for a few months." He goes on to say that economic conditions in 2009 were stronger than expected, and that the rate of employment peaked at a lower level than anticipated.
ANZ and the Commonwealth Bank have already passed on RBA's rate rise, with other banks expected to follow suit.
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