Subscribe to the BlogAustralia has been one of the star performers in 2007 at the peak of global boom , only because it was exporting huge quantities of Iron ore, Coal and Uranium. But the global crisis that started in the beginning of 2008 and extended till 2009 middle, pushed the Australian economy into deep trouble.
That forced the Australian government to cut down interest rates drastically, and also provide massive tax cuts for the corporate sector.
But since the middle of 2009, China has been able to single handedly push up all the commodity prices including Iron ore and coal. And these lead to Australian economy reviving with a vengeance, and now the Australian government has raised up the bank rates by 25 basis points.
The Central bank has also indicated that there could be more interest rate hikes in the near future, if there is further acceleration in the economy. The US and European countries are yet to recover back from the global crisis , and once they recover, Australia might enter a high growth phase.