Money Minute – December 4 2017 Rates on Hold

Rates on hold

The Reserve Bank makes an interest rate decision tomorrow, the last of the year, and like normal it will be on hold.

This means the officially cash rate has been on hold at the emergency low rate of 1.5 per cent for 15 months. So long ago that Glenn  Stevens, who joined the Macquarie Bank Board was the governor  at the time.

But I want you to remember the Reserve Bank’s charter – and that is the stability of the currency in Australia.

Lets look at that one over the past 18 months, pretty stable so that’s a tick for the Reserve Bank and its board.
B is the maintenance  of full employment in Australia. Well, the past 18 months or so unemployment rates dropped from 5.7 to 5.4 per cent in the past 12 months.

346,000 jobs have been created. Sot hats a big tick for that as well.

There you can see, the economic prosperity of the Australian people. Now, be your own judge about this – is your welfare and prosperity better or worse off than two years ago. More jobs is good for prosperity, but with high house prices – Sydney and Melbourne of course – there are clear signs they are starting to cool.

Is this good or bad for prosperity?

Those household with high debt are vulnerable. They are sensitive to losing a job or higher interest rates. And as you are aware, there are calls for rates to be raised inline with parts of the world.

The question everyone needs to ask is whether high rates would hurt households than they would help.

Quicklinks to recent Money Minute progammes

Money Minute – December 1 2017 Banks Commission

Money Minute – November 30 2017 Bitcoin Boom

Money Minute – November 29 2017 Economy is ‘Robust’

Money Minute – November 24 2017 Myer Crisis Meeting

Money Minute – November 22 2017 Tourist Dollar Battle

Money Minute – November 21 2017 Who Pays for Tax Cuts?

Money Minute – November 20 2017 Bank Royal Commission?

Money Minute – November 17 2017 Job Prospects Brighter

Money Minute – November 16 2017 The Big Squeeze

Money Minute – November 15 2017 High Noon At CommBank

Money Minute – November 14 2017 Crisis Bites

Money Minute – November 13 2017 Where’s the Money?

Money Minute – November 9 2017 Teflon Bank

Money Minute – November 8 2017 Markets Fire Up

Money Minute – November 7 2017 Rates, Cup and Fights

Money Minute – November 6 2017 Tax Scandal Breaking Today

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