Interest rate pain continues

Published: August 08, 2008 - 12:02 PM

RBA leaves rates on hold

By Amanda Edmonds

Tuesday saw The Reserve Bank leave the official interest rate unchanged at 7.25%, providing little relief to Australian families struggling to make ends meet. Glen Stevens, Governor of Monetary Policy, said that the RBA’s decision follows the recent success of its strategies to reduce consumer spending. “The evidence is that the tightening in financial conditions, in conjunction with other factors including rising fuel costs, and lower asset values, has restrained demand.”

Steeply rising living costs, including the price of gas and electricity is an issue for many Australian households. The RBA’s decision to hold interest rates steady, despite consecutive rises in the past, means that it is even more important to research and compare the suppliers of basics, such as gas and electricity, carefully.

Stevens also states that “the high prices of oil and a range of other commodities have added to the pressure.” The prices of electricity, in large centres such as Melbourne in Victoria, have been rising along with interest rates in recent years. But the decision to keep the rate steady does not mean the pressure is off families seeking the cheapest electricity and gas prices.

With many electricity companies around all claiming to offer the cheapest electricity and gas rates, it is often hard for families to decipher the complicated energy deals on offer and find what is the best electricity plan or gas rate for them. ShopAround.com.au provides the valuable service of comparing the prices of gas and electricity in an effort to help families find the cheap electricity and gas rates. With ShopAround.com.au, it is easy to compare the price of electricity or compare gas suppliers to find the most suitable energy deal. The four step comparison is quick and simple with the truth about “cheap” electricity and “cheap” gas prices being revealed.

There is also speculation that this is not the end of the interest rate increases. With inflation high, the RBA needs to increase rates until the economy slows down. With it still going strong, rate rises in the near future are not out of the question. This means tougher times ahead for Australian families. ShopAround.com.au’s easy-to-use way to compare electricity companies and gas suppliers from Melbourne to Mildura can help ease the interest rate pain.

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