7 June 2006, 13:15  Australia's central bank keeps interest rates on hold

Reserve Bank of Australia left interest rates unchanged at 5.75% today, after last month's raise by 25 basis points, the first move since March 2005.
The decision was widely anticipated by the market. Economists think the Reserve Bank of Australia is likely to have decided that it can afford to wait to see if last month's rate hike will have the desired impact. Higher borrowing costs and record gasoline prices sent consumer confidence to a seven-month low in May. Signs the housing market and wages growth are cooling suggest RBA Governor Macfarlane may not raise rates again this year.
"If the May rate increase has damped retail spending and the housing market further, then the Reserve Bank is going to be quite satisfied with that one-off move," said Brian Redican, economist at Macquarie Bank Ltd.

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