Australia raises rates for second month in a rowAustralia's central bank hiked interest rates by 25 basis points for a second successive month on Tuesday, saying the improving economic outlook and expected growth in Asia justified the move. Central bank governor Glenn Stevens Glenn Stevens is an Australian economist and the current Governor of the Reserve Bank of Australia. Stevens was born in Sydney in 1958. He was educated at the University of Sydney where he received a first class honours degree in economics. said the bank had decided to up the official cash rate to 3.50 percent, its highest level since February, citing "noticeably better" conditions for Australia's major regional trading partners. "Growth in China has been very strong, which is having a significant impact on other economies in the region and on commodity markets," Stevens said. "For Australia's trading partner group, growth in 2010 is likely to be close to trend." Australia last month became the first advanced economy to raise interest rates since the global financial meltdown meltdown Occurrence in which a huge amount of thermal energy and radiation is released as a result of an uncontrolled chain reaction in a nuclear power reactor. The chain reaction that occurs in the reactor's core must be carefully regulated by control rods, which absorb , declaring the risk of a recession over and lifting rates from 50-year lows. The interest rate rise comes after the government on Monday sharply lifted its economic forecasts, flagging growth of 1.5 percent instead of a 0.5 percent contraction and indicating that unemployment will peak at a relatively modest 6.75 percent. Australia was also the only major Western nation to avoid a recession in the worldwide slump and posted growth of 0.6 percent in the three months to June -- the best in the developed world. The central bank aggressively slashed slash v. slashed, slash·ing, slash·es v.tr. 1. To cut or form by cutting with forceful sweeping strokes: slash a path through the underbrush. 2. the rate from 7.25 percent last September to a 49-year low of 3.0 percent, while the government injected in·ject·ed adj. 1. Of or relating to a substance introduced into the body. 2. Of or relating to a blood vessel that is visibly distended with blood. injected 1. introduced by injection. 2. congested. stimulus worth more than 70 billion dollars (63 billion US) into the economy. Stevens said economic conditions had been stronger than expected and measures of confidence had improved thanks to the stimulus measures, while private investment appeared not be as weak as forecast. Housing and public infrastructure spending were accelerating, and Stevens said there were early signs of an improvement in labour market conditions. Growth was likely to be close to trend and inflation near to the official target of 2.0 to 3.0 percent, while unemployment was likely to peak at a "considerably lower level" than previously forecast. "With the risk of serious economic contraction An economic contraction is a reduction in goods and services for sale in the market place. Typically it relates to a downturn in production caused by external factors such as weather or a decline in exports, or by such internal factors as taxes, regulatory constraints or other in Australia now having passed, the Board's view is that it is prudent to lessen less·en v. less·ened, less·en·ing, less·ens v.tr. 1. To make less; reduce. 2. Archaic To make little of; belittle. v.intr. To become less; decrease. gradually the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker," Stevens said. Treasurer Wayne Swan Wayne Maxwell Swan (born 30 June 1954), Australian politician, has been an Australian Labor Party member of the Australian House of Representatives from March 1993 to March 1996 and again since October 1998, representing the Division of Lilley, Queensland. said the economy was recovering and "rates could not stay at 50-year emergency lows forever". The result was in line with market expectations of a modest rise, following the release of the lowest inflation figures in 10 years last week. Analysts said Stevens' tempered remarks pointed to a likely pause in further increases to the cash rate until 2010. "The specific language ... could possibly suggest the RBA RBA Rare Bird Alert RBA Reserve Bank of Australia RBA Run Book Automation RBA Rochester Business Alliance RBA Rights-Based Approach RBA Royal Brunei Airlines (ICAO code) RBA Relative Byte Address RBA relative binding affinity believes it has done enough for the time being, possibly pausing over December and January before reassessing the appropriateness of the cash rate in February," said IG Markets analyst Cameron Peacock peacock or peafowl, large bird of the genus Pavo, in the pheasant family, native to E Asia. There are two main species, the common (Pavo cristatus), and the Javanese (P. . The RBA had never in its history raised rates for three consecutive months, said CommSec economist Savanth Sebastian. "I think there's a good chance they will pause in December and come back in February to do the rest of their work," Sebastian said. 
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