Sydney: Australia’s central bank left official interest rates on hold Tuesday, saying downside risks to the global economy appeared to have abated, particularly in China, Europe and the US.
Reserve Bank of Australia governor Glenn Stevens kept rates at their record low of 3%, a level last seen in the global financial crisis, offering an upbeat assessment of global and domestic prospects.
“Global growth is forecast to be a little below average for a time, but the downside risks appear to have abated, for the moment at least,” Stevens said following the bank’s first meeting on monetary policy for 2013.
“The United States has so far avoided a severe fiscal contraction and financial strains in Europe have lessened considerably over recent months. Growth in China has stabilised at a fairly robust pace.”
The rate pause had been widely expected by analysts, and the Australian dollar dipped slightly to US$1.0429 from US$1.0444 immediately before the decision.