Reserve Bank of Australia raises key rate

Last updated: October 10, 2009

Dhaka, Bangladesh (BBN)- The Reserve Bank of Australia (RBA) has raised the cash interest rate saying it is prudent to begin lessening the monetary policy stimulus in the local economy because conditions are improving.

The RBA has lifted the cash rate by 25 basis points to 3.25 percent after its board meeting on Tuesday. The move was not widely expected; with most economists tipping the central bank would leave rates unchanged.

The Bank of England (BOE)’s policy committee decided to maintain the official Bank Rate at 0.5 percent while the European Central Bank (ECB) left its key rate unchanged at 1.0 percent in their meetings on Thursday.

BBN/SS/SI/AD-10October09-3:43 pm (BST) 

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