Saturday, October 25, 2014   

Australian central bank keeps rates at 2.5pc
(02-04 12:22)

Australia's central bank held its cash rate steady at a record low of 2.50 percent Tuesday and hinted at a prolonged pause, saying a period of interest rate stability was prudent as the mining boom unwinds.
Reserve Bank of Australia (RBA) governor Glenn Stevens said the board had decided to leave interest rates on hold for a fifth consecutive month, as expected by analysts, AFP reports.
Despite inflation coming in at a stronger-than-expected 0.8 percent in the final three months of 2013, indicating a pick-up in consumer spending, Stevens said growth and labour market prospects remained shaky as Australia's decade-long Asia mining investment boom began to decline.
"Information becoming available over the summer suggests slightly firmer consumer demand and foreshadows a solid expansion in housing construction. Some indicators of business conditions and confidence have shown improvement,'' he said.
"At the same time, with resources sector investment spending set to decline significantly, considerable structural change occurring and lingering uncertainty in some areas of the business community, near-term prospects for business investment remain subdued.''
Looking ahead, Stevens said the RBA expected "growth to remain below trend for a time yet and unemployment to rise further before it peaks''.
"In the board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target,'' he said.
"On present indications, the most prudent course is likely to be a period of stability in interest rates.''
Australia's mining-driven economy expanded a modest 0.6 percent in the three months to September and 2.3 percent on-year, with the government describing it as "stuck in second gear'' as it transitions to non-resources sector drivers of growth.
Unemployment is 5.8 percent, with the economy shedding 22,600 jobs in December.   
Other Business breaking news:
China and 20 other countries sign up to regional bank (10-24 18:00)
Britain says EU is asking for bigger contribution (10-24 17:49)
British economy grows slower in Q3 (10-24 17:00)
Firm in China's first bond default to be restructured (10-24 16:59)
Hang Seng closes lower (10-24 16:22)
Pearson reports sliding sales (10-24 16:22)
European stocks fall at open (10-24 16:05)
BASF says won't meet 2015 targets (10-24 16:04)
ECB to unveil results of eurozone bank health check (10-24 16:04)
German consumer confidence stops falling: survey (10-24 15:59)

More breaking news >>

© 2014 The Standard, The Standard Newspapers Publishing Ltd.
Contact Us | About Us | Newsfeeds | Subscriptions | Print Ad. | Online Ad. | Street Pts

 


Home | Top News | Local | Business | China | ViewPoint | CityTalk | World | Sports | People | Central Station | Spree | Features

The Standard

Trademark and Copyright Notice: Copyright 2014, The Standard Newspaper Publishing Ltd., and its related entities. All rights reserved.  Use in whole or part of this site's content is prohibited.   Use of this Web site assumes acceptance of the
Terms of Use, Privacy Policy Statement and Copyright Policy.  Please also read our Ethics Statement.