At their March meeting Australia's Reserve Bank board resisted the temptation to reduce rates even further than the dramtic cuts made in the past few months, and have left the Official Base Rate at 3.25%. This remains the lowest in 45 years and goes against the predictions of many that a further cut was possible.
In making the decision, the board noted that the Australian market is performing better than many other global economies and that some normality is returning to financial markets internationally.
Australia is still yet to record a negative GDP growth and despite gloomy media reports may well steer a path clear of a recession in the coming months.
A lot of this is a result of the strong incoming migration that continues to underpin economic activity as well as healthy profit reporting from many Australian companies, especialy our banking sector.
We may not yet be out of the woods, but it is becoming more eveident that the worst is behind us as government bailouts and stimulus packages start being rolled out around the world.
There is still scope for a further rate cut in Australia if it is deemed necessary, but we may have sen the last of the dramatic cuts that were so welcomed by owner occupiers and investors alike in the recent past.
In making the decision, the board noted that the Australian market is performing better than many other global economies and that some normality is returning to financial markets internationally.
Australia is still yet to record a negative GDP growth and despite gloomy media reports may well steer a path clear of a recession in the coming months.
A lot of this is a result of the strong incoming migration that continues to underpin economic activity as well as healthy profit reporting from many Australian companies, especialy our banking sector.
We may not yet be out of the woods, but it is becoming more eveident that the worst is behind us as government bailouts and stimulus packages start being rolled out around the world.
There is still scope for a further rate cut in Australia if it is deemed necessary, but we may have sen the last of the dramatic cuts that were so welcomed by owner occupiers and investors alike in the recent past.
