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Australia's Interest Rate Remained on Hold


марта, 07 2017
watermark Economic news

Australia's Interest Rate Remained on Hold Australia kept its interest rates steady on Tuesday, March 7, because the property prices of Sydney continued to increase its risk which exceeded a much-lowered inflation rate. The Governor of Reserve Bank of Australia Philip Lowe concluded together with his board to remain the cash rate at 1.5 percent after a positive growth and optimistic performance in trading for the last three months of 2016. According to the poll led by Bloomberg, the decision were already projected by all 29 economists. Moreover, the housing demand in Sydney remained stable since buyers settled a property in the city which further ratcheted up debt records. The central bank decided to maintain its policy despite an extremely high house prices which partially stirred by the increasing population size coupled with the absence of family dwellings constructions. Furthermore, the country’s economy rose by 1.1 percent in Q4 versus the past three months and the 2.4 percent gained from a year ago.

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