Inflation Grows To A 9 Month High
January 18th, 2010
SMH has reported that inflation has risen another o.3 per cent in December equalling November’s 0.3 per cent rise. This news has added to speculation of the Reserve Banks rate hike in its next meeting in February. Supply and demand levels, lower than expected unemployment figures and a stronger demand for staff have all pointed towards a 25 base point increase bringing the interest rate to 4%.
Simon Reibelt from Oasis Home Loans Northern Beaches indicated that these rate increases were bringing the market back into a more neutral balance and that home owners and prospective home owners should make sure they have enough of a serviceability buffer to account for the rises.