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Interest Rates Stay at 2.75%

By Amanda Shannon

People thinking about taking the plunge and purchasing Broadbeach real estate are likely to be encouraged that interest rates have remained at historic lows.

The Reserve Bank of Australia (RBA) announced yesterday (June 4) that the key cash rate will stay at 2.75 per cent – although it said there is room for further cuts should they be necessary.

The RBA cut the base interest rate by 0.25 percentage points last month, which was the first reduction in 2013, although there were four in 2012.

This included slashing the rate by 0.25 percentage points in June, October and December, as well as a 0.5 percentage point drop in May.

Glenn Stevens, RBA governor, listed a number of reasons why the organisation had eased monetary policy recently.

"In Australia, growth over the past year has been a bit below trend," he stated.

"The outlook published by the [RBA] last month is for a similar performance in the near term and recent data are consistent with this."

Mr Stevens claimed the inflation rate was in line with medium-term targets, with expectations high that it will stay at this level for up to two years.

"At today's meeting the board judged that the easier financial conditions now in place will contribute to a strengthening of growth over time," he added.

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