Australia leaves rates on hold
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The Australian dollar is trading below 76 U.S. cents on Wednesday.
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SYDNEY, Australia (CNN) -- As expected, Australia's central bank has left its benchmark interest rate unchanged at 5.25 percent.
Most economists now expect the Reserve Bank of Australia will lift rates by a quarter of a percentage point in April or May.
The bank's board met Tuesday to consider the state of the Australian economy. On Wednesday morning it posted a brief statement on its Web site to say it had decided to leave the cash rate target unchanged.
The Australian dollar, which has gained about 30 percent against the U.S. dollar over the last year, is easing Wednesday and is down about half a percent to 75.91 U.S. cents.
Globally, the American currency is strengthening on a perception that U.S. interest rates will rise soon.
The Australian central bank last moved in December, when it lifted rates by a quarter of a percentage point to 5.25 percent. It was its second monthly move to help cool a long-running housing boom.
The bank said then that the overall prospect for the Australian economy was for strong growth.
Official figures released later Wednesday showed the economy grew a surprisingly strong 1.4 percent in the December quarter, up from 1.3 percent for the previous quarter. The full year rate of 4.0 percent for 2003 was about 0.5 percentage points above most forecasts.
