Australia ends interest rate rises

by Richard Kilner

Story link: Australia ends interest rate rises

The Board of the Reserve Bank of Australia has chosen to retain the interest rate at 3.75%.

Until now the Reserve Bank had raised the interest rate by 25 basis points per month consecutively, for the last three months.

Today’s decision marks the end of rate rises, with Australia being one of the few countries, along with Israel, to increase them following the financial crisis and resulting global recession.

The worldwide economy is continuing to grow, though the leading economic nations will see slower recoveries as they continue to feel the hangover from the financial crisis.

Australia itself has enjoyed a better economic situation than had been predicted, with unemployment believed to have had its high point at a much lower level than forecast.

Inflation has declined over the last period, but has recently increased, though it is predicted to remain within the target range.