In Australia, Interest rate continues to lower down for two consecutive months. Housing market dominated RBA’s decision to cut the interest rate.
The Board of Reserve Bank of Australia decided to lower cash rate by 25 basis points to 1.50%. This decision was effective last August 03, 2016.
Was this really the best hope? The exacerbating risks in the housing market had diminished because of lower interest rate. Interest rate plays a role on the economy. When the interest rate is low, the economy is likely grown faster. Will this cut is the response to slowing inflation?