More interest in Australia

As was predicted some months ago, the Central Bank of Australia has raised interest rates for the third consecutive month.

The cost of borrowing has been increased by 0.25% bringing it up to 3.75%. This means an increase of around $45 added to the monthly mortgage bill on a typical $300,000 loan, providing commercial banks also make the increase.

Australia was the only key developed economy to grow during the first half of this year.

Glenn Stevens, governor of the central bank, considers the country to be in recovery backed up by growth in consumer confidence and the business sector.

Progress was evident in the jobs sector and to this effect he anticipates unemployment levels to peak at a lower level than was predicted.

Financial spectators in Australia had expected further interest rate increases before the end of the year and analysts believed they would continue well in to 2010 and that by March, they could be heading towards 5%.