Australian Rates On the Rise

    March 2, 2005

Australia’s benchmark interest rate is being raised to the highest it has been in four years.

The Reserve Bank of Australia raised interest rates 0.25% to 5.5%, the first time they have gone up in over a year.

According to a BBC article,

“The figures, representing a decline from the 0.2% growth in GDP seen between July and September, were below market expectations.

Consumer spending remains strong, however, and the Bank is concerned about growing inflationary pressures.”

“Over recent months it has become increasingly clear that remaining spare capacity in the labour and goods markets is becoming rather limited,” said Reserve Bank governor Ian Macfarlane.

WebProNews | Breaking eBusiness News
Your source for investigative ebusiness reporting and breaking news.