RBA Keeps Rate Unchanged, Sees Inflation Contained

The Reserve Bank of Australia kept its benchmark interest rate unchanged as the country’s growth slows and risks to the global economic recovery persist, saying inflation likely will be contained through mid-2011.

Governor Glenn Stevens and his board left the overnight cash rate target at 4.75 percent today in Sydney, as forecast by all 26 economists surveyed by Bloomberg News. After seven rate increases since October 2009, Stevens said monetary policy is “appropriate for the economic outlook.”