19 Aug 2009

Australian central bank cautious

9:45 am on 19 August 2009

Australia's central bank believes interest rates will have to rise from record lows as the economy rebounds, but is worried an early move could shake consumer confidence and kill a recovery.

In the minutes for its August policy meeting, the Reserve Bank of Australia sounded a cautious note about the resilience in Australia's economy, saying it is unclear if the strength will outlast temporary fiscal stimulus and low interest rates.

Analysts say that suggests the bank is in no hurry to raise rates for now, and would monitor key data such as retail sales in coming months before it makes any move.