Further interest rate cuts 'unnecessary'

Further national interest rate cuts will not be necessary, it has been suggested.

According to the Reserve Bank of Australia (RBA), the national interest rate – which stands at three per cent – will not dip any lower.

The current rate, which is the lowest the country has seen for nearly 50 years, will not be reduced further thanks to economic advances, recently released minutes from the bank’s board meeting earlier this month suggest.

"Given the recent improvement in the global and domestic outlooks, it now appeared unlikely that this would be necessary," the minutes stated.

The RBA went on to say that a "less expansive policy" may be employed in the future, suggesting interest rates may increase, which could be of interest to those seeking out low interest home loans.

However, it was feared that raising rates too early may stifle consumer demand and confidence.

Glenn Stevens, RBA chief, recently asserted Australia is riding out the economic storm and has suffered less than many countries across the world.

Mr Stevens went on to say in his statement to parliament that this may be one of the "shallower recessions" the country has experienced.

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