Interest rates remain steady at 3%
Australian homeowners have missed out on more mortgage relief for the second month running, after the Reserve Bank kept rates on hold at three per cent at today's (March 5) meeting.
In a statement accompanying the bank's decision, RBA governor Glenn Stevens said that the effects of last year's interest rate cuts appear to be having an impact on the residential property sector, with improving conditions across the board.
"There are signs that the easier conditions are having some of the expected effects: the demand for some categories of consumer durables has picked up; housing prices have moved higher; there are early indications of a pick-up in dwelling construction; and savers are starting to shift portfolios towards assets offering higher expected returns," he remarked.
The governor went on to say that the peak in Australia's resource investment is approaching, with this likely to strengthen other industries.
Stabilisation of the world economy was also cited as a reason for the bank's decision, Mr Stevens said, adding that the US has managed to avoid a severe fiscal contraction and financial strains Europe have lessened over the past few months.