Interest Rate drops to 4.5%

Australia’s Central Bank stoops interest rate to 4.5% effective November 02, 2011. This is the first time that the bank lowered the interest rate since April 2009 to break away the nation’s economy from all uncertainties. The 25 basis point cut of Reserve Bank of Australia’s (RBA) decisions was expected by some of the economists and it was appropriate inflation. According to Glenn Stevens, Reserve Bank Governor said in a statement, “Over the past years, the Board has maintained a mildly restrictive stance of monetary policy in view of its concerns about inflation.” Financial markets have become stable recently and RBA’s decision will helped the needed families in Australia. Because of the overall stability, inflation would likely to close the target and it would be now consistent. Through this movement, we are now more confidence and consistent in achieving what we want to achieved to sustain the inflation growth. According to ING Direct Analyst Glenn Baker, “The RBA reduced the official cash rate to support the economy which has recently shown signs of weakening and to lift consumer and business confidence.