2013 September Australian Economy and Interest Rate

At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent.

What will the Election Bring?

Traditionally the announcement of an election brings with it a downturn in spending. However this time we are in an entirely different election period than we have ever experienced in the past.

Traditional election campaigns run for four to six weeks. This one has been running for six months since the election was first announced. We now have had a change of Prime Ministers during the election campaign, something that has never happened in the past and then to top it off we have a change in the election date. (Fixed term elections start to look good at this time).

The post election period usually herald a new spurt of economic growth, but the economy already seems to be picking up.

Is it because the long election campaign has numbed us?

Is it because the result appears more and more to be a foregone result?

Who knows? One thing is certain however that Australia’s economy is robust.

Property sales are on the rise in most areas in Australia, including the previously depressed market of Queensland. And if history repeats itself and the economy gets another boost in confidence and growth after the election, then last part of2013 will be a strong and profitable time for most people.