Lowest in the interest rate
The Reserve Bank of Australia says its decision to keep interest rates on hold this month was a very close call.
But the central bank has left the door open for future rate cuts.
Bank of Canada 0.5%
Bank of England 0.5%
Bank of Japan 0.1%
European Central Bank 1.5%
US Federal Reserve 0.25%
Swiss National Bank 0.25%
The Reserve Bank of Australia 3.25%
Australia is more reliant on foreign capital then other countries. Over 40% of the money banks lend to Australian business’s and residential mortgages comes from overseas. Its the interest rates which are higher then other countries that attracts this capital. Any reduction in foreign capital would lead to collapse in lending from Australian banks and this would lead to business cutting back operations leading to widescale unemployment and an enormous property crash. Personally I’d rather pay the higher rates. Their is simply not enough capital in Australia to maintain our current house price levels.
Current RBA gold and foreign exchange assets 67 638$mln..
And liked this one
Debt is not all bad, as long as it is used wisely.
We have just come through a period where we have borrowed money to buy things that we can’t afford to impress people we don’t like.
Dumb
