SYDNEY, Oct 5, 2010 (AFP) - Australia left interest rates on hold at 4.50 percent Tuesday for the fifth consecutive month, citing moderating inflation and uncertain global conditions.
Reserve Bank of Australia governor Glenn Stevens said rates were close to their average over the past decade, but warned they would be likely to push higher "at some point".
"If economic conditions evolve as the board currently expects, it is likely that higher interest rates will be required, at some point, to ensure that inflation remains consistent with the medium-term target," said Reserve Bank of Australia governor Glenn Stevens.
The decision surprised many analysts who had predicted a higher cash rate following a series of hawkish comments from central bank officials.
Australia, the only major Western country to escape recession during the financial crisis, raised rates six times from last October -- off five-decade lows -- before pausing in May.
The extended pause comes despite enviable 3.3 percent annual growth and 5.1 percent unemployment, compared to 10 percent in the eurozone and the United States' 9.6 percent, buoyed by strong resources exports to Asia.
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