Australian interest rates have hit a 50 year low
Australia’s central bank today cut interest rates to a 50 low of 3%, reinforcing fears that the country has been dragged into recession.
Since September the Australian interest rate has been slashed by a total of four and a quarter percentage points.
The cut comes following a fall in Gross Domestic Product of 0.5% at the end of 2008, while unemployment soared to its highest level in four years last month.
Reserve Bank Governor Glenn Stevens reported that short term the economic forecast was gloomy, with global recession continuing from the end of 2008 into 2009, regardless of government bail-out plans.
However, despite interest rate cuts by the central bank, so far only the Commonwealth Bank of Australia has matched it.
Mr Rudd has told banks to reconsider their decision not to match the cut, telling ABC Television, ‘This decision is disappointing and I’d urge them to reconsider.
‘We are in constant dialogue with the banks about a range of things.’
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