Interest Rates Stay Steady

LATEST AUSTRALIAN BUSINESS NEWS

As expected, the Reserve Bank of Australia (RBA) has kept official interest rates on hold again this month. In an announcement this morning, the RBA said that the official cash rate would remain at 5.5%. Most commentators expect the next move in rates to be downward, but for this not to occur until later in 2006.

This will most likely be the time when the Australian economy will be experiencing some flattening out and slower growth than has been experienced over the past years as higher fuel prices bite hard and inflation stays near the upper limit of the RBA's target range of 2% to 3%.

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David
editor@agarcarlyon.com