The Reserve Bank today left the cash rate unchanged at 3.5%, with a sanguine assessment of the economy, though it did cite increasing house prices in justification:
“monetary policy is easier than it was for most of 2011, with interest rates for borrowers a little below their medium-term averages. While it is too soon to see the full impact of those changes, dwelling prices have firmed a little over the past couple of months, and business credit has over the past six months recorded its strongest growth for several years. The exchange rate, however, has remained high, despite the observed decline in the terms of trade and the weaker global outlook.”
See more http://www.rba.gov.au/media-releases/2012/mr-12-18.html
