Interest rates up 25 basis points
The Reserve Bank of Australia (RBA) today acted to head off inflationary pressures in the econ-omy, lifting the cash rate to 6.25 per cent from 6.0 per cent.
The Reserve Bank of Australia (RBA) today acted to head off inflationary pressures in the econ-omy, lifting the cash rate to 6.25 per cent from 6.0 per cent.
It is the fifth increase in offical rates since November 1999. Australia's central bank last raised interest rates on May 3.
The RBA said that in making its decision, it considered a range of factors bearing on the outlook for the Australian economy and for inflation in particular.
"Measures of underlying inflation are now around two and a half per cent," RBA governor Ian Macfarlane said.
"This is within the target band but the trend has been upwards for a year or so and some further upward drift is likely to occur."
Despite an early morning slump in the Australian Stock Exchange at the news, share prices had recovered by noon.
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