MW; Australia central bank keeps rates on hold at 4.5%
By Sarah Turner
SYDNEY (MarketWatch) -- Australia's central bank kept its key cash rate at 4.50% on Tuesday, saying that growth in the near term is likely to be close to trend, inflation close to target and the global market remains somewhat uncertain. The Reserve Bank of Australia said that information suggests the Australian economy has been growing at around trend pace, helped by high levels of public spending, and added that private demand has been firming. Business credit has stabilized and evidence of more willingness to lend is slowly emerging, the bank said. To mid-2011, underlying inflation is expected to be in the top half of the bank's target zone, while consumer-price inflation is expected to be just above 3% for a few quarters, it said.
