insto - Australian financial markets

RBA raised the cash rate by 25 basis points to 3.75 per cent, effective 2 December 2009. Thjs is the third consecutive month for an interest rate increase– the first time it has ever lifted rates three months in a row. Rates had stood at a 49-year low of 3.00 per cent before the decision in October to lift the cash rate.

“The global economy… growth is likely to continue next year, though it will probably be modest in the major countries,” said RBA in a statement. “Growth in 2010 is likely to be close to trend and inflation close to target.”