Economists say emergency Bank meeting off
It is unlikely that the Reserve Bank will hold an emergency meeting this month to have another chop at the base rate, economists have announced.
Australian Associated Press reports that consumers will likely have to wait until February for any new low-interest home loans to come on the market.
ICAP senior economist Adam Carr described the likelihood of an early meeting as “miniscule”.
“Market conditions have not deteriorated further and the data is basically reflecting what the world was like post-Lehmans,” he told the news agency.
Since the collapse of the US investment house in September, the Reserve Bank has taken a whopping 300 basis points off the rate, taking a full 100 points at its last meeting in December, before the Christmas break.
Following the announcement, many major banks rushed to announce new low-interest home loan deals, while some credit card and personal loan rates have also dropped.