Australia central bank holds interest rates steady

Australia's central bank left its benchmark interest rate at a record low for a 13th-straight month Tuesday, after predicting slower-than-average growth ahead as the nation's mining boom slows and its currency remains strong. The Reserve Bank of Australia left its policy rate at 2.5%, saying more time was needed to support the transition away from mining. ‘Moderate growth in the economy is occurring,’ RBA Gov. Glenn Stevens said in a statement.’ Non-mining sectors of the economy, especially housing construction, are slowly recovering, but unemployment has meanwhile risen to its highest levels in 12 years, stirring caution among policy makers. The central bank downgraded its forecasts for growth and inflation last month, and Stevens urged businesses to embrace ‘animal spirits’ by investing and employing more people. With an eye on the job market, the bank is also watching house prices, which are rising at the fastest pace in four years, fueled by cheap money and demand from property investors. The Australian dollar remains a problem from a policy standpoint. It has remained well above 90 US cents this year, despite falling commodity prices, according to wsj.com