Reserve Bank of Australia calls for action in Europe

The Reserve Bank of Australia has called on Europe to fast-track its response to the ongoing financial crisis.

Governor of the institution Glenn Stevens was reported by the Australian Associated Press as saying a resolution to the situation is needed sooner rather than later.

"We're fast coming to a point where parties who have to come up with a solution have to hurry up and do it," he commented.

Despite the ongoing uncertainty in the global markets, Mr Stevens insisted the bank's decision to lower interest rates at the start of November was the correct one.

Indeed, he stated it was "entirely appropriate" for the Reserve Bank to take these measures despite economists predicting that inflation rates would rise.

Acting chief economist at the Housing Industry Association Andrew Harvey recently told Property Observer the home building sector would ultimately benefit if interest rates were reduced again in December, although no official plans to take such action have been outlined by the Reserve Bank.

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