Friday, April 08, 2005

Australian Interest Rates Unchanged

The Reserve Bank of Australia (RBA) announced this week that it would leave the official cash rate unchanged at 5.5 per cent, despite most analysts speculating to the contrary.

Financial analysts had predicted that the Reserve Bank was likely to follow up last month’s increase with another quarter per cent hike, as the RBA was concerned about inflation and employment figures. However, with indications that the economy is in fact slowing, together with the effect that the high price of oil has had on consumer spending, pressure to raise interest rates haslessened.