The Reserved Bank of Australia has decided to keep the official cash rate at 2.5% to end the year. RBA governor Glenn Stevens said that current policy is appropriate, but still refers to the Australian Dollar as “uncomfortably high”. The Australian dollar closed at 90.68 as opposed to the US dollar, slipping by 0.25 cents.
The move to leave the cash rate for the end of the year gives investors and buyers a boost of confidence in the residential sector, where new building approvals remain within normal ranges. The third quarter GDP increased by 0.7%, with an annual growth of 2.5%.
Read more about this on the Sydney Morning Herald website.