Another interest rate in Australia

As expected the Central Bank of Australia has increased the main interest rate from 3.23% to 3.5%.

The small rise comes after the recent announcement showing the lowest inflation figures in the last decade. Australia only just escaped the recession and invested heavily in financial payments for the elderly and low to middle-income groups of the population.

The government in Australia helped the country endure the global economic crisis with casdh incentives for home buyers and encouraging trade with overseas partners such as China.

Glen Stevens, Governor of the Reserve Bank of Australia, believes the outlook is much bettr than previously thought and the risk of severe economic reduction in Australia had passed giving rise to the possibility of inflation rising during 2010.

He also feels the outlook for continued trade with the country's Asian partners is looking up.