(Nov 11): Australia kept interest rates unchanged on Nov 5, betting that a rebound in property prices will increase household wealth and confidence and see consumers more willing to part with their cash.
Reserve Bank of Australia (RBA) chief Philip Lowe and his board left the cash rate at 0.75% in Sydney as they monitor the ongoing impact of three reductions since June. The decision was predicted by money markets and economists and comes as policymakers struggle to accelerate economic growth and rekindle inflation.
“Given global developments and the evidence of the spare capacity in the Australian economy, it is reasonable to expect that an extended period of low interest rates will be required,” Governor Lowe said in a statement announcing the decision. The board “is prepared to ease monetary policy further if needed to support sustainable growth in the economy”.
