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Australia's RBA keeps rates low as property sales soar

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Property prices have picked up smartly in the past three months, taking annual growth to near 11pc. (Photo:Townsville suburb, Queensland, Australia)

Property prices have picked up smartly in the past three months, taking annual growth to near 11pc. (Photo:Townsville suburb, Queensland, Australia)

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Property prices have picked up smartly in the past three months, taking annual growth to near 11pc. (Photo:Townsville suburb, Queensland, Australia)

The Australian central bank kept interest rates at record lows for the 12th straight policy meeting on Tuesday and seemed content to stay on the sidelines for a while to come as the economy wrestles with a waning mining boom.

The local dollar held at $0.9295 as the Reserve Bank of Australia said the currency was overvalued by most measures - but stopped short of actively trying to talk it down.

"Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time," said RBA Governor Glenn Stevens, in a statement that made much use of the word "moderate" to describe the economy. "On present indications, the most prudent course is likely to be a period of stability in interest rates."

The RBA has sounded reluctant to ease again, in part for fear of adding fuel to an already hot housing market.

Property prices have picked up smartly in the past three months, taking annual growth to near 11pc.

Irish Independent