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Australia's central bank says interest rates will be kept unchanged in August, due to the cooling of its core inflation. This is despite the bank's expectations price pressures will pick up by 2012, as economic growth accelerates.
The Reserve Bank board assessed the existing cash rate level as being appropriate. The bank also says it feels comfortable leaving rates unchanged at 4.5 percent, as domestic growth and inflation are panning out as expected.
Investors widely expect borrowing costs to be on hold until next year, after the benchmark rate was boosted six times between October 2009 and May this year.