SYDNEY--Australia's central bank left interest rates on hold and
forecast "stability" in rates ahead, as the cooling of a decadelong
mining-investment boom crimps the economy.
The reserve bank kept the benchmark cash-rate target at a
record-low 2.5% at its latest policy meeting on Tuesday.
"In Australia, recent data indicate somewhat firmer growth
around the turn of the year, but this resulted mainly from very
strong increases in resource exports as new capacity came on
stream," Gov. Glenn Stevens said in a statement accompanying the
decision.
"On present indications, the most prudent course is likely to be
a period of stability in interest rates."
The central bank has cut interest rates eight times since
November 2011, from a peak of 4.75%, in an effort to spur nonmining
parts of the economy. Fading investment in the resources sector has
slowed growth over the past two years and driven up unemployment
close to levels reached in the aftermath of the global financial
crisis.
Write to Shani Raja at shani.raja@wsj.com
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