RBA keeps interest rates at 3.0 percent as Australia Economy looks solid for recovery.

Australian home owners, home buyers, new home builders and retailers and mortgage lenders appears to have escaped the recession that has swept the World, with the Reserve Bank of Australia deciding to leave interest rates unchanged at 3 per cent, when the board met today at its June Meeting.
The decision to keep interest rates at its 45-year low is good news for the housing industry, home buyers and mortgage lenders and was widely tipped by economists.
Economists believe that the Reserve Bank is right in keeping its powder dry, in case further interest rates cuts are necessary who towards the end of the year, if in fact they are needed.
In a statement released this afternoon, Reserve Bank governor Glenn Stevens said there was evidence emerging the global economy is stabilising.
Australia's economy looking good.
"The turnaround is clearest in China and some other emerging countries," he said.
"Recovery in the major countries is likely to take longer to begin and be slower when it does occur."
Mr Stevens said although the effect of low mortgage rates was yet to be seen, future rate cuts were possible if the economy continued to deteriorate.
"The prospect of inflation declining over the medium term suggests that scope remains for some further easing of monetary policy, if needed."
The Reserve Bank cut the official cash rate by 25 basis points in April ending 425 basis points worth of reductions since September.
The central bank has since indicated it is in no rush to lower rates further as it assesses the impact of its easier monetary policy stance and the Federal Government's stimulus packages.
The stimulus packages have worked their magic and have lifted the retail industry, with figures out yesterday showing consumers spending a record $19.4 billion shopping in April.

'Super-size my home" urge is driving the housing crisis

Liberal backbencher Bruce Baird, chairman of a parliamentary inquiry into home lending practices, told The Australian yesterday he would investigate the phenomenon of people unwilling to live in suburbs in their price bracket.
"I've heard others say ... there's a wish to go for the McMansion and they want to be in nice suburbs, with ducted cleaning systems, airconditioning and plasma screens," he said.
But Queensland Liberal backbencher Steve Ciobo - who has been urging John Howard to consider doubling the first-home buyers' grant to $14,000 - strongly rejected the idea.
He said people were "self-regulating" but they also had a right to be "aspirational".
"I find it hard to believe that someone would say: 'No, I will not purchase a home because I want four bedrooms and four bathrooms but it's well out of my price bracket' when there's an opportunity to purchase something smaller, further away, within their price bracket," he said yesterday.
The Opposition is due to hold a national housing summit in Canberra on Thursday.
Several Coalition backbenchers have told The Australian they are concerned that Labor is "owning" the issue of housing affordability.
They said it was made worse by the fact the Coalition did not have a dedicated housing minister to develop ideas and take on the ALP.
Mr Baird said he had noticed resistance among home buyers to moving "out to other suburbs which are cheaper, where expectations are not quite as high".
However, Mr Ciobo said families did not need lectures: "From my perspective, it's like saying to people, well you shouldn't be aspirational.
"I don't think there's anything wrong with being aspirational."
Mr Baird said housing affordability would be a key issue in this year's federal election.
"The Government has done quite a bit in terms of the first-home owners' scheme, but it remains an issue."
He said his inquiry would investigate whether banks were to blame for lending people too much money.Source: The Australian