Australia’s interest rates at all-time low
05 May 2015 by News Desk
The Federal Reserve Bank has lowered Australia’s interest rates to an all-time low of 2.0 per cent.
The move is expected to make mortgages and loans cheaper and is aimed at stimulating business activity and the national economy.
Glenn Stevens, Governor of the RBA, says: “In Australia, we have seen improved trends in household demand over the past six months and stronger growth in employment. Inflation is forecast to remain consistent with the target over the next one to two years, even with a lower exchange rate.
“Low interest rates are acting to support borrowing and spending, and credit is recording moderate growth overall, with stronger lending to businesses of late. Growth in lending to the housing market has been steady over recent months. Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities.
“The Australian dollar has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.”
