Australia leaves interest rates unchanged

SYDNEY, Australia (CNN) -- Australia's central bank left interest rates unchanged Wednesday for the third straight month.

The Reserve Bank of Australia's benchmark overnight cash rate remains at 4.25 percent -- the lowest level since 1972.

The bank, which reviews interest rates at its monthly board meeting, last cut on December 5, when it eased by a quarter of a percentage point.

Any change is announced to the market the morning after the board meeting. Wednesday's lack of movement was widely anticipated, with most analysts now expecting the next rate movement to be up, probably in the second half of 2002.

Australia's economy has been one of the strongest performing among the world's advanced nations in the past year, due to a competitive currency, a domestic housing boom fuelled by low interest rates and government subsidy, and a good demand for key commodity exports.

Most observers expect the Australian economy will grow at between 3.2 percent and 3.8 percent this year, following growth of 2 percent in 2001.

In its quarterly review of monetary policy released three weeks ago, the Reserve Bank said that while a "significant global recovery is not yet assured, it does appear more likely than was the case a few months ago."

The Australian dollar traded recently at 52.00 U.S. cents, slightly below Tuesday's close of 52.01.