Mar 16
RBA Back Maintain Interest Rates 4.75 Percent
Tuesday, 05 July 2011 06:34

Central Bank of Australia (RBA) today (3 / 5) decided to maintain interest rates at 4.75 percent level. Thus, the RBA has a record six consecutive months to maintain interest rates at that level.

The decision was in line with that anticipated by economists and market participants in advance.

In a statement accompanying the announcement of interest rates, RBA Governor Glenn Stevens said that recent inflation data showed the effects of declining production due to floods and Cyclone Yasi. Stevens added that the RBA predicts inflation will approach the target level within a year along with the reduced pressure of rising prices due to factors that are temporary.

Data released by the Australian Bureau of Statistics (ABS) earlier showed Australian inflation rises above expectations in the first quarter of 2011. Spurred by rising prices of food and fuel, inflation jumped to 1.6 percent in the first quarter of 2011 from 0.4 percent in the fourth quarter of 2010 before.

Jump in rising inflation in the first quarter, according to the ABS, the highest since the June quarter 2006.