Australian central bank again leaves rates on hold

SYDNEY (AFP) — Australia's central bank left its key interest rate unchanged at 5.5 percent for the 11th consecutive month as softening business conditions keep inflationary pressures in check.

The Reserve Bank of Australia last increased its official cash rate in March 2005, by 0.25 of a percentage point, to rein in price pressures fueled by a booming housing market.

Inflation has since eased, with the consumer price index falling to 2.8 percent in December from 3.0 percent the previous quarter, at the top of the RBA's target range of 2.0-3.0 percent.

The latest RBA decision, taken at the bank's first monthly policy board meeting of the year on Tuesday, was almost universally expected.

But some economists are forecasting that continuing high oil prices and wage pressures will lead the bank to hike its key rate later this year.

The ...