Australia with the weak economic growth of eight years
Economic growth in Australia was delayed by up to 0.1 percent during the third financial quarter to the end of September as a slow its pace of eight years, shows official data published today, quoted by AP.
Annual growth of gross domestic product (GDP) recorded 6-year minimum of 1.9 percent, which reinforces fears of falling of the Australian economy into recession.
The official government forecast for economic growth for 2008 is 2 percent.
The reported data is bad news for the economy of Australia to unprecedented 17 years enjoyed economic growth largely due to strong demand for Australian mining and steel resources in China and other rapidly developing countries.
Yesterday the central bank lowered the country’s main interest rate by 1 percentage point to 4.25 percent in an attempt to cope with delays caused by the global financial crisis.
Reserve Bank of Australia took another decision for aggressive reduction in interest rates, weigh it with full percentage point to 4.25 percent. At present level of the indicator is the lowest for the past six years, a series of reductions is the strongest since the last recession in 1991 here.
Bank Governor Glenn Stevens announced the fourth reduction in interest rates over the last several months early this morning in Melbourne. Analysts were surprised by this move, most forecast drop of 0.75 basis points.
According to Stevens monetary policy becomes expansion to be able to restore the confidence of businesses and consumers. It suffered a stinger because collapse of the major index in the country by 44 percent since the beginning of the year and the biggest drop in housing prices over the last 20 years.
Calculations of the central bank show that the reduction by three percentage points of major interest from September until now save each household with a loan of 250 thousand Australian dollars 500 dollars each month, reported Bloomberg.
So far, the decision of the central bank does not have significant pressure on the Australian currency. After the decision before the Australian traded on course 0,6374 AUD / USD, then this morning the U.S. dollar compared to 0,6346 AUD / USD.
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