The Reserve Bank of Australia has held the cash rate at 4.5 percent for the second month running. It is believed this decision was made as a result of high inflation figures and volatility in overseas markets. This RBA is playing it safe by maintaining the currrent cash rate. This will prove favourable to those paying off a mortgage.

One of the members of the RBA Board, Jillian Broadbent, has stated in a speech to a stockbrokers conference that the outlook for our domestic economy is positive mainly due to the benefits from a boom in commodity exports. She criticised the way the overall benefits of our mineral exports are being down-played in many areas and said the RBA expects Australia’s terms of trade to improve around 20 percent this year.