World Economy

Australia Rates on Hold

Australia Rates on HoldAustralia Rates on Hold

Australia’s central bank held interest rates at a record low 1.50% Tuesday ahead of quarterly economic growth data analysts expect to come in weak, AFP reported. The Reserve Bank of Australia slashed 300 basis points from borrowing costs between November 2011 and August last year to support non-resources industries as the economy transitions out of a mining investment boom. It has remained on hold since then. “The outlook continues to be supported by the low level of interest rates,” said central bank governor Philip Lowe of the widely-anticipated decision. He said the transition to lower levels of mining investment was “almost complete” and business conditions had improved in parts of the economy not directly affected by the decline.

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