 Signs of a recovery
In a show of support for a recovering economy, the Reserve Bank of Australia left interest rates unchanged yesterday.
The RBA argues that recent economic news has been more positive, particularly from China and India, two of the biggest customers for Australia's commodity exports, and that local indicators have also been surprisingly positive.
''Evidence has continued to emerge that the global economy is stabilising, after a sharp contraction during the December and March quarters,'' RBA Governor Glenn Stevens said in a statement.
''The considerable economic policy stimulus in train in most countries is helping to contain the downturn, and should support an eventual recovery,'' Mr Stevens said.
The key cash rate remains at a 49-year low of 3 per cent. The central bank had lopped 425 basis points from the official rate between last September and April in a bid to keep the economy expanding through a global downturn.
There has been a fall in the official jobless rate in April to a 5.1 per cent rise in building approvals for the month.
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