The Reserve Bank of Australia has decided to leave interest rates on hold as a result of a contracting
economy that was experienced in the last quarter running from October to December 2008. The country
experienced a 0.5% economic contraction, bringing it closer to a technical recession.  Economic data
highlight the imminent danger of recession in Australia. In fact, some analysts say that if the Australian
economy experienced another consecutive quarter of contraction, then it will have entered a technical
recession.  Some analysts however argue that the technical definition is splitting hairs and that the
economy has already entered in a recession.

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Posted by Shue on March 25th, 2009 :: Filed under RBA

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