Australia's RBA raises interest rates to 4.50 pct 09:32, Wednesday, 8 May 2002
SYDNEY, May 8 (Reuters) - Australia's central bank raised the official cash rate to 4.50 percent from 4.25 percent on Wednesday after Tuesday's monthly board meeting, heralding the start of a new tightening cycle.
This was the Reserve Bank of Australia's first tightening since August 2000 and follows 200 basis points worth of easings during 2001, which took the cash rate to a near 30-year low.
Economists had given a 70 percent risk of a rate rise this month. ((Colin Brinsden 61-2 9373-1800, Sydney Newsroom,