One more month of relief
(7 September 2010 – Australia) Australia’s home-owners will be able to breathe easy for another month, after the Reserve Bank of Australia announced that rates would remain unchanged at 4.5 percent.
The central bank has left the official cash rate at 4.5 percent for the last four months, following six consecutive rises beginning in October last year.
The Reserve Bank board met only an hour before the independents announced their decisions on the next federal government.
Announcing the decision, RBA governor Glenn Stevens said that recent data had suggested the Australian economy is growing at the expected level.
Business credit has stabilised and while credit conditions for some sectors remain difficult, evidence is slowly emerging of more willingness to lend, Mr Stevens said.
The Reserve Bank’s governor added that the demand for labour has firmed over the past year in line with improving growth. After the significant decline last year, growth in wages has picked up somewhat, as had been expected.
The Reserve Bank board met only an hour before the independents announced their decisions on the next federal government.
Announcing the decision, RBA governor Glenn Stevens said that recent data had suggested the Australian economy is growing at the expected level.
Business credit has stabilised and while credit conditions for some sectors remain difficult, evidence is slowly emerging of more willingness to lend, Mr Stevens said.
The Reserve Bank’s governor added that the demand for labour has firmed over the past year in line with improving growth. After the significant decline last year, growth in wages has picked up somewhat, as had been expected.
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