The Reserve Bank today announced that it will leave its interest rate unchanged citing indications of a revival in China as cause for hope that the worst may be over.
Official interest rates are now at a 49-year low of 3%, where the central bank has moved them in response to the slowing economy in Australia.
New housing approval figures for March would have also given the Reserve confidence. Approvals lifted 3.5 per cent in March, the biggest increase in more than 15 months, with approvals for both homes and units up 2.8 per cent.
Bank governor Glenn Stevens issued a comment confirming that previous rate cuts are starting to kick start the housing sector.
The comments suggest that the RBA may hold rates at 3 % for some time.