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The Reserve Bank has decided to leave official interest rates unchanged at 5.25%. This follows yesterday's board meeting, where it considered whether there was a need to further increase rates to rein in the strong domestic economy - especially the housing market. Data released on Tuesday showed the 0.5 percentage point increase in rates had begun to slow growth in dwelling approvals; while signs are emerging that house price growth has begun to slow. Additionally, a slowdown in housing and vehicle-related activity is starting to be felt among manufacturers, a new survey released this week shows.
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Tuesday, February 07, 2012