The RBA Holds Firm, but the Broader Aus Economy Needs More Help – 05/03/2013
The Reserve Bank of Australia (RBA) yesterday decided to leave the official cash rate at 3.00% for another month as they continue to see of the previous cuts in interest rates help kick start the broader economy.
National accounts figures released today showed the economy grew in the December quarter close to its long term trend, however, as the Australian reports this was helped by large government investment during the quarter.
For the Australian economy to show signs of strong growth the non-mining economy needs to start kicking goals, and many pundits believe this will require some support from the RBA in the form of another interest rate cut for households to spend more and business to invest in machinery and staff.
Some Government direction would also probably help, but considering we are in un-official election campaign mode the Governments focus will most probably remain on campaigning and not governing.
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