Australia May Keep Key Rate Unchanged at 3% for Third Month

Australia’s central bank may leave interest rates unchanged for a third month amid signs the lowest borrowing costs in half a century and government spending are helping the economy skirt the global recession. Reserve Bank Governor Glenn Stevens will keep the overnight cash rate target at 3 percent at 2:30 p.m. in Sydney today, according to all 20 analysts surveyed by Bloomberg News. Australia was one of few major economies including China and India to grow in the first quarter as government cash handouts and rate cuts stoked consumer spending. Growth may slow after reports recent showed exports dropped to a 14-month low, bank lending fell, home building approvals declined by the..... read more