The Reserve Bank of Australia has decided to keep interest rates on hold at 3.75%. It was widely expected that interest rates would increase by 0.25% and the markets had already factored in that expected increase.
Rates are still 3% less than when the current Federal Labor Government won power in November 2007. It would appear that the Reserve Bank has taken the recent release of economic indicators into account, including those showing a decreased number of job advertisements, decreased levels of business confidence and a decrease in the number of new home sales.
The decision to hold rates today will be welcomed by home and business owners around the country. It is also positive for those looking to enter the property market and will assist the levels of consumer confidence around Australia.