Source: AFP
Australia’s central bank left official interest rates steady at 4.25 per cent on Tuesday, saying global conditions had, on balance, improved and local growth and inflation were close to target.
Reserve Bank of Australia governor Glenn Stevens said interest rates for borrowers had “declined to be close to their medium-term average” after two rounds of rate cuts in November and December last year.
The United States was expanding moderately, offsetting weakness in Europe, and though China’s growth had eased slightly, Stevens said it “remained quite robust through the second half of last year”.
“With growth expected to be close to trend and inflation close to target, the Board judged that the setting of monetary policy was appropriate for the moment,” Stevens said.
The Australian dollar surged on the news to US$1.08 from US$1.0705 prior to the announcement.
