(EDRBA) RBA says economy grows well but higher rates not needed now.

(From RWE)

Sydney - Monday - August 8: (RWE Aust Business News) - The Reserve Bank of Australia said today that financial conditions were supporting economic growth but were not at a point which would require adjusting the cash rate.

The RBA has held the cash rate steady at 5.5 per cent since raising it by 25 basis points after its March board meeting.

In its quarterly statement on the economy the central bank said a number of favourable developments had transpired recently and inflation appeared to be in check for the time being.

However, underlying inflation is expected to rise to a peak of 3.0 per cent by the end of 2006.

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