2 Feb 2011

Australia leaves interest rates on hold

7:35 am on 2 February 2011

Australia's central bank left its cash rate unchanged at 4.75%, saying the impact of flood damage in Queensland and Victoria on prices and activity should be temporary.

Australia's economy has slowed recently, but the Reserve Bank of Australia expects solid growth in the medium term, led by higher demand for resources from Asia.

Most economists are expecting the Bank to resume raising the cost of borrowing sometime in the June quarter.