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Stevens Gauges Europe, Says Australia Vote No Barrier on Rates

The Reserve Bank of Australia signaled that Europe’s stress tests on banks, along with local inflation data, will determine whether it raises interest rates for the second time in its history during a federal election.

“The important question for the board at its next meeting would be whether the new information materially changed the medium-term outlook for inflation,” the bank said in minutes of the July 6 meeting released in Sydney. Board members also said Europe’s tests, due this week, have “the potential to have a significant impact on financial markets and global confidence.”