Anyloan Australia :: News

Anyloan Australia News

Inflation fall strengthens case for rate cuts

Source: ABC News: 06 Dec 2011

A leading unofficial measure of inflation eased last month due to falling food and fuel prices, strengthening the case for interest rate cuts next year.

The TD Securities-Melbourne Institute Inflation Gauge fell 0.1 per cent in November to an annual rate of 2.1 per cent.

The trimmed mean - the Reserve Bank's preferred measure of inflation - was at 2.2 per cent for the year.

The result marks a two-year low, and falls at the lower end of the Reserve Bank's target range of 2 to 3 per cent.

A 2.1 per cent fall in the cost of fruit and vegetables eased price pressures, while fuel costs fell 3.5 per cent in the month and prices for travel and accommodation also eased.

But increased prices for household appliances, tools, furniture and new homes offset those falls.

TD Securities head of Asia-Pacific research Annette Beacher says petrol prices could begin to rise in the coming months.

"I think as we start to see a little bit more unrest in the Middle East and we are starting to see oil back over the $100-a-barrel mark we think that's the last of the sharp falls in fuel," Ms Beacher said.

Ms Beacher says the result strengthens the case for a cut in the official cash rate next year, but suggests it may be too soon for the central bank to act this month.

"We could be talking a year or two down the track before we start talking about higher interest rates," she said.

"The European crisis at the moment is in a holding pattern, so I think the RBA is best to sit tight and wait for this crisis to unfold next year and certainly be in a position to cut by 50 or 100 [basis] points should we find ourselves in a 2008 liquidity situation."

The monthly TD Securities-Melbourne Institute inflation measure is based on the methodology used by the Australian Bureau of Statistics to calculate its official quarterly inflation figures.

ABC News


Finance Articles

Loan Finance: How to Shop Around Without Damaging Your Credit Loan Finance: How to Shop Around Without Damaging Your Credit
If you are considering taking out a loan, you wouldn’t go out of your way to make it harder on yourself to get approved or to get a good interest rate, would you? Yet many loan applicants would enjoy a considerably better outcome on their loan application if they followed this important rule. - read more
5 Credit Killers 5 Credit Killers
A good credit score speaks volumes about your financial habits. It's the evidence most creditors need to evaluate your credit worthiness. - read more
Simple Tips On Getting Your Loan Simple Tips On Getting Your Loan
So, you want to get a loan? Here are some simple tips that might help you make more informed decisions about the type of loan you buy, and from whom. - read more
Why Payday Lending Enhances Consumer Welfare Why Payday Lending Enhances Consumer Welfare
Today, We’ll defy the critics and demonstrate why consumer welfare is enhanced within a competitive payday-lending environment. - read more
How to Buy a House with Bad Credit How to Buy a House with Bad Credit
Most people would expect that a bad credit rating would make it impossible to get a mortgage to buy a home - but it's not as simple as that. Can you buy a house with bad credit? The short answer is YES, but it is not all that easy. - read more
Business Loans: Managing interest rate risks Business Loans: Managing interest rate risks
"I want the protection in the current low interest rate environment but I don't want to be locked in for too long a period" - a commonly heard requirement from business borrowers. - read more
A Chattel Mortgage for Business Finance - Six rules of evaluation and selection. A Chattel Mortgage for Business Finance - Six rules of evaluation and selection.
A Chattel Mortgage loan is a simple yet effective finance option designed for business plant and equipment purchases. Here are six rules to consider when arranging finance for your business that will ensure you retain full control over the loan process and save money in the process. - read more
Credit Cards: Identity Theft and Credit Protection Credit Cards: Identity Theft and Credit Protection
Credit card fraud and identity theft have become widespread not only on the Internet but offline as well. Learn how to avoid these risks and protect your identity as well as your finances or credit line. - read more
Co-Signing Loans - Risky Business Co-Signing Loans - Risky Business
There may come a time in your life when you are asked to co-sign for a loan or credit card. If this is the case, there are several things to consider before making a final decision. Technically, you are putting yourself at risk of damaging your own credit in the event that the loan goes unpaid. - read more
The Truth Behind Payday Loans The Truth Behind Payday Loans
There’s a lot been said about payday loans. Many claim that the interest rates charged are outrageous. Others say that they are the only source of finance available for those with less than perfect credit score. There is a bit of truth in both claims but there is much more to payday loans than meets the eyes. - read more

Finance News

Personal Loans to help Australians in need: FSO
Oct 29 :: As Australia prepares to clean up following devastating fires and floods, Financial Services Online CEO, Andrew Clark, has announced a package... read more
Small business loans to help Aussie businesses through tough times
Nov 27 :: Financial Services Online has today announced a new credit facility for Australian business customers who are seeking loans for amounts of up... read more
Police issue warning about bank scam
Nov 20 :: Melbourne police are warning people about a scam in which fraudsters pose as bankers and ask for money.They say they cold call customers... read more
ANZ nets solid profit despite wealth management
Oct 26 :: ANZ banking group has reported a solid full-year result with net profit attributable to shareholders up 6 per cent to nearly $5.7 billion -... read more
Millions lack access to basic financial services
Jun 01 :: Nearly 3 million Australians do not have access to basic financial products such as a credit card, car insurance or even a bank account, according... read more
Reserve Bank leaves interest rates steady
Apr 04 :: The board of the Reserve Bank of Australia has left interest rates unchanged at 4.25 per cent at its monthly meeting today, as widely expected.The... read more
Big banks not too profitable: RBA
Feb 25 :: The governor of the Reserve Bank says the Australian banking sector is not too profitable.Appearing before the House of Representatives... read more
Commonwealth Bank changes ads following ASIC concern
Jan 16 :: The Commonwealth Bank of Australia has agreed to change some of its advertised loan comparison rates after concerns were raised by the... read more
Inflation fall strengthens case for rate cuts
Dec 06 :: A leading unofficial measure of inflation eased last month due to falling food and fuel prices, strengthening the case for interest rate cuts... read more
Reserve Bank cuts domestic growth outlook
Nov 07 :: The Reserve Bank of Australia (RBA) has cut its forecast for economic growth and inflation in its latest quarterly report card.Europe's... read more

Need Help Finding a Loan?
Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check!
Loan Amount:
Postcode:
All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Debt Consolidation:
Taking advantage of lower interest rates that may be available by the grouping of multiple loans into one, lower interest rate loan.


Quick Links: | Compare Loans | Bad Credit Loans | Finance For Self-employed | Low Rates | Free Loan Assessment