Australia Keeps Interest Rates Steady; Aussie Dollar Rises

“The Reserve Bank of Australia left its benchmark interest rate unchanged for a sixth straight meeting and signaled little urgency to increase borrowing costs as a stronger currency helps contain inflation.

Central bank Governor Glenn Stevens today held the overnight cash rate target at 4.75 percent in Sydney, as forecast by 23 of 28 economists surveyed by Bloomberg News. In a statement after the decision, he said “inflation will be close to target over the next 12 months.”

The Australian dollar reversed earlier gains and investors slashed bets the RBA will raise rates in the third quarter. The nation recorded its weakest job growth since 1999 in the first four months of this year as manufacturing, services and construction lag behind a mining industrythat is expanding to meet Chinese demand for raw materials.”

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