Analyst’s expectations have been met, when on Monday The Reserve Bank (RBA) chose not to cut interest rate cuts, holding them at 3%. Many wonder if this is a wise move considering rising unemployment levels, falling house prices and concerns that the Swine flu epidemic has hindered prospects of a global economic recovery.
RBA Governor Glenn Stevens, forecasts that the economy is slowly improving, but still has a long way to go, stating that global financial conditions remain on a path of gradual improvement, despite confidence remaining relatively fragile.
Although interest cuts have not been passed cut this month, it must be remembered that the RBA has slashed rates from 7.25% to 3% since September 2008, in an attempt to resuscitate the economy.
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