Australia leaves rates on hold
SYDNEY, Australia (CNN) -- Australia's central bank has left its benchmark interest rate unchanged at 5.25 percent for the fourth straight month.
The decision, announced by the Reserve Bank of Australia on its Web site Wednesday morning, was widely expected.
It followed a meeting of the bank's board on Tuesday to consider the state of the Australian economy.
Most economists now expect rates will remain on hold for the near future.
Earlier this year, sentiment pointed to the central bank lifting rates by a quarter of a percentage point in April or May, ahead of a federal election in the second half of 2004.
The central bank last moved in December 2003, 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 Australian share market is at record levels and the Australian dollar is holding firm at 76 U.S. cents Wednesday. It has gained about 30 percent against the greenback in the last 12 months.
While most market observers agree there is now a slowdown in capital city property investment, consumer confidence in the Australian economy remains high.
The latest consumer sentiment index, released Wednesday by Westpac and the Melbourne Institute, shows a 1.1 percent rise in April from March.
The Australian economy grew 3.3 percent in 2003 and is running at about a 4 percent rate so far this year. According to the Reserve Bank, the inflation rate, measured by the consumer price index, was 2.4 percent in 2003.
