Looks like AUD rates will be staying at current levels for the moment...
SYDNEY - AUSTRALIA paused an aggressive series of interest rate rises on Tuesday, citing turmoil on global markets over Europe's debt woes which have raised the spectre of a 'double dip' recession.
The Reserve Bank of Australia opted to leave rates on hold at 4.50 per cent, deciding against a fourth straight quarter-point hike and the seventh since October.
'Interest rates to borrowers are around their average levels of the past decade, which is a significant adjustment from the very expansionary settings reached a year ago,' said Reserve Bank of Australia governor Glenn Stevens.
'Taking all the available information into account, the Board views this setting of monetary policy as appropriate for the near term,' he added. Australia's stock market and national currency have fallen sharply over the past month as investors were rattled by debt problems in Greece, Spain and elsewhere which have prompted emergency action by European leaders.
The economy has also been overshadowed by a row over a new tax on the key resources sector, which has helped drive Australia's strong recovery from the financial crisis.
The rates decision followed mixed data on Tuesday, with April retail sales up a better-than-expected 0.6 per cent from a month earlier but housing building approvals down 14.8 per cent. -- AFP
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