RBA leaves rates steady
(6th October 2010 − Australia) The Reserve Bank of Australia (RBA) has given homeowners a much needed reprieve by opting to leave interest rates steady for the 5th month in a row.
The governing body left the cash rate unchanged at 4.5 percent, leaving open the option of a rate rise by the end of the year.
In the RBA's accompanying statement for its October rate decision, Governor Glenn Stevens said higher interest rates would be ‘required at some point’ to keep inflation under control.
Mr Stevens said that the global economy had grown faster than trend over the year to mid 2010, but would probably ease back to about trend pace over the coming year.
The RBA’s governor also said that recent information indicates a more sustainable, but still strong, pace of growth in China and most of the Asian region, however noted that the legacy of the financial crisis and its impact on private and public finances still characterises a degree of uncertainty in relation to Europe.
In the RBA's accompanying statement for its October rate decision, Governor Glenn Stevens said higher interest rates would be ‘required at some point’ to keep inflation under control.
Mr Stevens said that the global economy had grown faster than trend over the year to mid 2010, but would probably ease back to about trend pace over the coming year.
The RBA’s governor also said that recent information indicates a more sustainable, but still strong, pace of growth in China and most of the Asian region, however noted that the legacy of the financial crisis and its impact on private and public finances still characterises a degree of uncertainty in relation to Europe.
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