June 24, 2011
As the phenomenon known as Rate Watch continues, Reserve Bank of Australia Governor Glenn Stevens has reiterated the need for interest rates to rise, but softened the blow with a promise of greener pastures for Australia in the near future.
Speaking to the Economic Society in Brisbane last week at his first public appearance in two months, Stevens said a first homebuyers or rate rise would hinge on a review of economic data in July, leading many to believe August is still D-Day for the much-hyped increase.
With the bad news out of the way, the Governor went on to say that the wealth from the mining and resources boom would be shared throughout the country and not remain in the hands of a fortunate few.
“The impact of the resources sector expansion does get spread around, in more ways than might immediately be apparent,” he said.
Stevens added that while mining employs less than 2 per cent of the Australian workforce, those companies spend about 40 cents of every dollar of revenue on non-labour inputs, mainly from the domestic sector.
Other industries he said would reap the benefits include utilities, transport, business services such as engineering, accounting, legal, exploration and others.
He also attributed growth in the resources sector, combined with other factors at work in the economy, with keeping national unemployment at a rate of around 5 per cent, with Queensland slightly above that figure.
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