Interest rates maintained at 49-year low

Thursday 03 September 2009

Article by Mozo

The Australian interest rate is to be maintained at the current level, which may be good news for those looking for low interest home loans.

At its meeting yesterday (September 2nd), the Reserve Bank of Australia (RBA) voted to keep the three per cent rate that represents the lowest it has been in nearly 50 years.

This is the fifth consecutive month the institution has taken this decision.

In a statement regarding the announcement, Glenn Stevens, RBA governor, said the cash rate remains appropriate for the time being.

"Economic conditions in Australia have been stronger than expected, with consumer spending, exports and business investment notable for their resilience," he commented.

Mr Stevens went on to add that unemployment has not risen as far has had been anticipated.

Looking to the future, he said the board will continue to alter its financial policies in order to encourage sustainable growth.

This week, federal treasurer Wayne Swan warned that banks may have to increase their interest rates ahead of a rise in the national level, according to news.com.au.

This article is brought to you by Mozo – Helping you compare interest rates
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