Don't miss the Auction to be held on site at 46 Wyuna Place, Forster Keys - Saturday 15th September 2007 at 11:00 am.
The property features 3 bedrooms upstairs, kitchen-family room, plus sunroom. Downstairs there is a rumpus, laundry with 2nd shower and toilet plus kitchenette & living room. Good sized garage. See this website for photos.
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Author: Colin Kruger and Phillip Coorey
Date: August 8, 2007
Publication: Sydney Morning Herald
The Reserve Bank announced a 0.25 percentage point increase in interest rates on Wednesday morning to 6.5 per cent putting further pressure on Australia's mortgage belt and Prime Minister John Howard's election campaign.
The latest increase, which will add about $50 a month to the average $250,000 home loan, is the ninth in succession since May 2002.
It is almost unprecedented to have rate rises in an election year. Today's increase lifts rates to their highest level in 10 years.
The cash rate is 6.5 per cent and the standard variable loan rate to 8.3 per cent.
"For some months, the Board has recognised that stronger economic conditions were likely to put upward pressure on inflation, notwithstanding some dampening influence from the higher exchange rate," said RBA governor Glenn Stevens in a prepared statement.
"However, the high CPI outcome for the June quarter indicated a less favourable near-term outlook, with the implication that any further increases in inflation would take place from a higher starting point than previously envisaged.
"Based on these considerations, the Board judged that a somewhat more restrictive monetary policy setting was required in order to keep inflation consistent with the target in the medium term," he said.
The news is not unexpected. An AAP survey conducted last month found 17 out of 20 economists expected an interest rate rise in August.
Twenty six of 28 economists surveyed by Bloomberg tipped today's rate rise and a Credit Suisse index yesterday rated the likelihood of an increase at 82 per cent.
The widely tipped decision means the cash rate sits at its highest level since December 1996.
Banks are expected to pass on the rate rise to customers as soon as today or tomorrow, moves that will see the average standard variable mortgage rate jump to 8.32 per cent.
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