Australia leaves rates on hold
 |
Australian interest rates have been on hold since June 2002.
Story Tools
|
SYDNEY, Australia (CNN) -- Australia's central bank has again left its benchmark interest rate unchanged at 4.75 percent.
The Reserve Bank of Australia said Wednesday that its board met Tuesday and decided no change was required.
Rates in Australia have now been on hold since June last year, when the central bank raised the cash rate target by a quarter of a percentage point to 4.75 percent.
The board's decision was widely expected, with the next rate move expected to be a cut, possibly by mid-year.
Drought, the weaker global economic outlook and a downturn in Australia's tourism and transport sector brought on by the war in Iraq and the flu-like SARS virus are all weighing on the Australian economy, following its strong run in 2002.
Economic growth forecasts for Australia this year are in the range of 2.75 percent to 3 percent, with a spurt to about 4 percent in 2004.
On the currency front, Australia's dollar is at 60.57 U.S. cents, about 1.2 cents below a three-year high of 61.79 U.S. cents touched on March 5.
On the equity market, Australia's benchmark S&P/ASX200 is at 2905.0 in early trade Wednesday. It touched a three-year low of 2693.3 on March 13.
