Rates restraining demand: RBA

The Reserve Bank of Australia's rate-setting board believes rates, which it has held at a 12-year high of 7.25% since March, are beginning to restrain demand.

The minutes of the board's 1 July meeting said: "Members concurred that the evidence becoming available in the latest month had added weight to the view that the current stance of policy, in conjunction with the more general tightening in financial conditions that had occurred since the middle of last year and most recently the additional

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