澳洲央行维持利率不变

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Australia Holds Key Interest Rate at 6.75%

DOW JONES NEWSWIRES
December 4, 2007 10:50 p.m.

SYDNEY -- The Reserve Bank of Australia as expected kept its official cash rate target on hold at 6.75% Wednesday and expressed concern about global financial market instability.

The RBA's concern moderated expectations that the central bank would raise interest rates in February, but most analysts said that on balance they expect a further tightening to combat still-strong inflation pressures.

In a change in practice, the RBA published a statement explaining why it left interest rates on hold at its policy meeting on Tuesday as well as minutes from its policy meeting in November.

The move toward increased transparency follows criticism of the RBA over a number of years that it has lagged behind other central banks in terms of openness.

The global credit crunch and threats to U.S. economic growth have emerged as chief concerns for RBA policy makers, even as inflation threatens to push above the 2%-to-3% target band in 2008.

"The board remains concerned about the outlook for inflation. But given the heightened uncertainty about the international outlook and the local trends in wholesale borrowing costs, both of which could have a bearing on inflation over the medium term, it judged that the current stance of monetary policy should be maintained for the time being," RBA Governor Glenn Stevens said in a statement.

The comments suggest interest rates are on hold at least while markets remain jittery and clouds darken over the world's largest economy.

The RBA's policy-making board met Tuesday for the last time in 2007. The cash rate target remains at an 11-year high of 6.75% after being raised in November and August. Rates have been raised 10 times since mid-2002.

The Australian dollar fell to US$0.8700 on the RBA's comments from around US$0.8745.

The RBA acknowledged the impact of the global credit crunch in Australian markets and said rising wholesale funding costs for banks would likely be passed on to consumers, damping demand.

Economists say the RBA remains concerned about the inflation outlook, but some said the next hike in rates could be pushed back further into 2008.

A question mark hangs over the outcome of the RBA's policy meeting in February, but most economists say inflation pressures will ramp up next year, forcing the RBA's hand.