Australia leaves interest rates on hold

AFP, SYDNEY: Australia's central bank left interest rates at a record low of 1.50 per cent yesterday while striking an upbeat tone on the economy following a rebound in growth at the end of last year.
The Reserve Bank of Australia slashed rates 300 basis points between November 2011 and August last year to support non-resources industries as the economy transitions out of a mining investment boom.
It has remained on hold since then.
In similar language to the previous month, RBA governor Philip Lowe said "the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time".
The bank has had plenty to think about since its February meeting, with data this month showing the economy rebounded strongly in the December quarter, growing 1.1 percent for an annual rate of 2.4 percent.
The better-than-expected numbers, after a shock 0.5 percent contraction in the three months to September, came on the back of buoyant exports, government investment and household spending.

Australia leaves interest rates on hold

AFP, SYDNEY: Australias central bank left interest rates at a record low of 1.50 per cent yesterday while striking an upbeat tone on the economy following a rebound in growth at the end of last year. The Reserve Bank of Australia slashed rates 300 basis points between November 2011 and August last year to support non-resources industries as the economy transitions out of a mining investment boom. It has remained on hold since then. In similar language to the previous month, RBA governor Philip Lowe said the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time. The bank has had plenty to think about since its February meeting, with data this month showing the economy rebounded strongly in the December quarter, growing 1.1 percent for an annual rate of 2.4 percent. The better-than-expected numbers, after a shock 0.5 percent contraction in the three months to September, came on the back of buoyant exports, governmentinvestment and household spending.