Australia ups interest rates for a fifth time
Wednesday 07 April 2010
Australia's central bank raised interest rates by 25 basis points to 4.25 per cent yesterday, as part of a strategy to bring borrowing costs back to "average" levels.
The Reserve Bank of Australia (RBA) is forecasting economic growth at between 3.25 and 3.5 per cent in 2010, and inflation close to the 2 to 3 per cent target range. With the worst of the recession now over, the plan is to cut back on stimulus measures and return to fiscal and monetary normality, the bank said yesterday.
"With the risk of serious economic contraction in Australia having passed some time ago, the board has been lessening the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker," Glenn Stevens, the Governor of the RBA, said. "The RBA board judges that with growth likely to be around trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average. Today's decision is a further step in that process."
Australia was the first developed country to raise its interest rates in the aftermath of the financial crisis – taking rates from 3 to 3.25 per cent last October and raising them by 0.25 percentage points another four times since.
Opponents to the latest rise claim the rise could damage economic recovery, pointing to February's 1.4 per cent fall in retail trade and rising unemployment as evidence of the fragility of the improvements.
But Wayne Swan, Australia's Treasurer, said rates are still lower than before the crisis. "The fact is that rates went to 50-year lows during the recession and as the Governor is pointing out today... they are merely returning to more normal levels," he said.
- 1 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 2 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 4 When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- 5 Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Ashya King missing: Police hunt five-year-old boy with brain tumour snatched from Southampton hospital by his parents
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Papua New Guinea Mount Tavurvur volcano eruption sees international flights diverted
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...