Fed: Interest rates remain on hold in August

AAP General News (Australia)
08-04-2004
Fed: Interest rates remain on hold in August

Homebuyers have been spared higher mortgage repayments for at least another month after
the Reserve Bank left interest rates on hold today.

The official cash rate remains at 5.25 per cent.

The rate hasn't changed for eight months in a row, although economists say the case
is building for another hike after the federal election.

The central bank lifted rates late last year in the face of a run-up in debt and house
prices, which softened early this year in response.

But since then, a recovery in building approvals, exports and strong consumer spending
indicate the economy may have accelerated out of a soft patch.

New figures today show the services sector bounced back in July as new orders rose
to the highest level since January.

AAP RTV kmh/sb/wz/rp

KEYWORD: ECONOMY (CANBERRA)

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