The Reserve Bank has expressed concerns over the existing economic conditions, and declared that further interest rate cuts may be very unlikely amidst high inflation and growing unemployment rates.
The Reserve Bank has cited the rise in inflation as a major factor to keep the interest rates pegged at 2.5% in their meeting earlier this week. The low interest rates have helped the housing sector, construction and retail, but they have been getting little help from the other sectors. The RBA is expecting an economic growth between 2.25% and 3.25% this year.
Read more about this on the Australian website.