Monday, April 1, 2013

Economic Buzz: Australia Holds Key Interest Rate At 3%

The Reserve Bank of Australia on Tuesday left the country's key interest rate unchanged at 3%, meeting widely held expectations by economists. The rate has been at 3% since December when monetary policy makers cut it by a quarter-percentage point. The central bank in a statement Tuesday said global growth is forecast to be a little below average for a time, but the downside risks appear to be reduced. Policy makers, led by Governor Glenn Stevens, also said labor costs remain contained and businesses are focusing on lifting efficiency. These trends should help to keep inflation low, even as the effects on prices of the earlier exchange rate appreciation wane. Australia's currency was little changed after the decision, trading at $1.0466. It settled late Monday at around $1.0422.
Source by Commodity Insights

No comments:

Post a Comment