The interest rate has been left unchanged at 4.5 per cent.
The Reserve Bank of Australia (RBA) has decided to keep the
interest rate unchanged at 4.5 per cent.
Governor Glenn Stevens predicted that the global economy - which has grown quicker than trend up to mid-2010 - will probably slow down later in the year with the financial markets now running more smoothly.
He also noted that domestic
Aussie credit and asset markets offer a more balanced picture than six months previous.
"Business credit has stabilised and while credit conditions for some sectors remain difficult, evidence is slowly emerging of more willingness to lend," Mr Stevens added.
Moreover, there has been an improved jobs demand in the country over the past year, in contrast to a "significant decline" in 2009.
The RBA pointed out that credit outstanding for housing had slowed slightly over recent months, which comes after it pointed out in August that levels on home loans were about right in May - when it last upped the interest rate.
By Mark Hornby
