RBA minutes show interest rates set to remain static

Tuesday 15 February 2011

Article by Mozo

Interest rates are unlikely to be put up any time soon, the board of the Reserve Bank of Australia (RBA) has suggested.

The RBA signals it intends to keep interest rates level

At the start of the month, the central bank once again opted to keep the base rate of interest at 4.75 per cent.

Now, with the minutes of the decision-makers' February meeting having been released, it is apparent that there are no plans to put this rate up at any point in the foreseeable future, with economists keen to address the current situation of Australian consumers focusing on paying off their debts rather than spending what money they do have.

The meeting notes state that the RBA feels that such a "slightly restrictive" economic policy is "appropriate" for the time being.

"The continuation of subdued growth in consumer spending and the lower-than expected inflation outcomes provided additional time for the Board to assess at future meetings the evolving risks to both output and inflation," the notes read.

Meanwhile, the New Zealand media is reporting that Kiwi workers are continuing to flock to Australia for jobs as their home economy remains sluggish.

Get more information on the latest Reserve Bank interest rates with Mozo.
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