RBA optimistic about the economy

The Reserve Bank of Australia (RBA) is confident that the country's economy is on the verge of growing.

Minutes from the board of directors' latest meeting have now been released and they show that the RBA is generally happy with the way things are going at the moment, although it is aware that events in Europe could scupper any potential economic recovery down under.

Many economists had predicted the RBA to lower interest rates in February, following two readjustments towards the end of 2011, but this did not happen.

The central bank also left the cash rate untouched at the start of this month and many lenders saw this as an opportunity to raise the interest rates on their home loans.

However, the RBA has revealed there is scope to reduce rates further should the financial crisis in the eurozone start to impact trading conditions further afield.

"On balance, the board considered that it was appropriate for interest rates to be around their average levels, which was judged to be the case at present," the minutes revealed.

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