|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
07th of October 2010
|    Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  
October 6, 2010    

Australia continues to put brakes on rate hikes

Bookmark and Share

by Kay Murchie

The Reserve Bank of Australia (RBA) has again elected to leave interest rates on hold at 4.5%.

It is the fifth consecutive month in which rates have been at this level and economists had expected rates to rise to 4.75% this month.

However, it is still expected that the central bank will only leave rates on hold for the short-term.

Australia was the first economy to raise rates from a 50-year low as the economic downturn eased. Other major economies opted for lower interest rates to boost their economies.

The country is one of the few developed economies not to have fallen into recession like its counterparts throughout the world as it has benefited from an increase in commodity prices, while exports have received a boost due to demand from China for its iron ore and other raw materials.

Explaining its decision, the RBA said concerns remain about global financial markets and weak growth in Europe and the US.

In a statement the RBA said: “The board regards this as appropriate for the time being. If economic conditions evolve as the Board currently expects, it is likely that higher interest rates will be required, at some point, to ensure that inflation remains consistent with the medium-term target.”

Inflation currently stands at 2.75% - well within the Bank’s target of 2-3%.

Discuss this in the Finance Markets forums

Story link: Australia continues to put brakes on rate hikes

Need a loan? Apply for one now!
Personal loan application
  • Over 100 lenders
  • Instant decision
  • No obligation quote
  • Safe, easy, and simple
  • Your data is protected

Related financial stories to: Australia continues to put brakes on rate hikes:
Previous: «
Next: »

Visited 272 times, 47 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Tags: , , , , , , , , , within target


Economy News feed Economy News

All Financial News feed All Financial News