Stable interest rates indicated by the RBA

The Reserve Bank of Australia chose to keep rates on hold for the 10th consecutive month yesterday despite speculation that rising inflation could stir an increase.

According to RBA Governor Glenn Stevens, China and India’s need for Australia’s resources has boosted both trade and mining investment to new heights.

The Reserve Bank of Australia chose to keep rates on hold for the 10th consecutive month yesterday despite speculation that rising inflation could stir an increase.

According to RBA Governor Glenn Stevens, China and India’s need for Australia’s resources has boosted both trade and mining investment to new heights.

Steven’s optimistic view that Australia would not be too badly affected by recent dips in the global economy bear contrast to last month’s speculations that rising inflation and unsteady global economies could see home owners facing an interest rate rise.

"Periods of sudden increases in anxiety within international financial markets are moments when, if at all possible, it is good to be in a position to be able to maintain steady settings," said Stevens yesterday.

This new, more positive forecast for home owners is largely put down the weakening of the RBA’s prediction for world growth, which they claim could hold back inflation in the long run.

The official interest rate is still at 4.75%, on hold since Melbourne Cup day last November.

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