The Australian Central bank has raised the bank rate for the fourth time today, by 25 basis points. This is the fourth rise in the last five months by the Central Bank. The Australian government is worried about the abnormal increase in the real estate prices in the country over the last six months.
The low rate of interest meant for industrial recovery has partly been routed for speculation and hence the central bank has decided to tighten the liquidity in the system. This is expected to cool down the property prices to some extent and would also help the country to stabilize the economic recovery.
Australia jacks up bank rate to 4%
March - 1 - 2010 - Monday
