Australia looks to be holding interest rates unchanged

Sunday, 3 April 2011 11:04

RBA (Reserve Bank of Australia) looks to be holding interest rates unchanged, the benchmark 4.75% being the highest benchmark in the developed world.

Futures markets show a possible movement in the dec contract.

The Aus$ has climbed 13% over the past year supported by the mining boom and demand from China and India, the strength in the currency has lessened the need for Central Bank intervention.

As the Aus$ increases in value, it has made exports more expensive, and if it continues to make new highs it will put downward pressure on inflation. RBA has increased its forecast for growth in 2011 to 4.25%, revised from 3.75% last last year.