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Cash rate at historic low 03.05.17

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As economists and traders have predicted, it has come to no surprise the RBA have decided to continue the official cash rate at 1.5 per cent, as it has been for the last eight meetings in a row.

According to the RBA Board, the current position of monetary policy remained unchanged in the latest meeting on Tuesday, 2nd May to continue to be consistent with sustainable economical growth and achieving the inflation target over time.

The surge in housing prices since 2009 has been a contributing factor to high indebtedness of many households in Australia; a topic RBA governor Phillip Lowe is due to address later this week. Lowe maintains that housing market conditions "continue to vary considerably around the country", even though April saw a halt in price growth within Sydney and Melbourne metro areas.

Shane Oliver, chief economist from AMP said "Raising interest rates by 1 per cent or so would certainly address housing affordability...but it would plunge the country into recession. House prices might come down, but people would worry about losing their jobs". Many have been concerned over the housing market, however the RBA maintains the decision has taken account all current available information.

AMP Capital chief economist Dr Shane Oliver commented on the plateau, predicting rates would begin to increase in the third quarter. "Continuing low underlying inflation pressure at a time of very high underemployment, record low wages growth and a still too high Australian dollar means that its way too early to be thinking about raising rates" ("RBA leaves cash rate on hold in May", www.news.com.au).

In contrast, Stephen Koukoulas, from Market Economics (an economic adviser to former prime minister Julia Gillard), has commented that many expect the RBA will most likely cut rather than hike rates in the coming months. Future reports and data releases will be key in determining what the RBA decides in future.

If you have any questions about how this may affect you, please get in touch today.

 

Enhance your mobile security

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With the proliferation of smartphones and internet-connected devices, the focus of online security is rapidly shifting away from the desktop and towards mobile devices. Leading experts believe that the fast-paced embrace of mobile devices in our everyday lives are leaving us vulnerable to financial risks.

A 2014 Norton Report indicated that the total cost of cybercrime in Australia for 2013 was AU$1.06 billion, whilst the number of Australian cybercrime victims has reached 5 million. Despite these alarming statistics, many Australians are not aware of the dangers.

Read more: Enhance your mobile security

   

The joys of opening a joint account

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Whether you’re just moving in with your partner or taking that big step to purchasing your first home together, opening a joint savings or transaction account can have many benefits (if you have the right attitude).

Your personal journeys as a couple relies on commitment and openness, and in many ways this is the same for sharing an account. Being receptive to each other’s attitudes towards money is integral to making sure it works.

Read more: The joys of opening a joint account

 

How to find the dream tenants for investment properties

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Over the past two decades, purchasing investment properties have made a great deal of money for some Australians by providing their owners’ with a constant stream of steady income. If you currently own an investment property, or are in the market for one, be aware that there are a number of different factors that can impact your return on investment. Of those considerations, having good tenants is of upmost importance.

Read more: How to find the dream tenants for investment properties

   

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