Australia's central bank raises rates, anticipates further tightening

Australia's central bank raised its key interest rate by 25 basis points to 3.25 percent and anticipate further monetary tightening, saying that now that the greatest danger to the economy is over, it is safe to remove the monetary stimulus.
The Australian dollar rose the most in 14 months as investors were quick to discount at least one more rate increase around Christmas, with a rise in official borrowing costs above the 4 percent within a year.
Asian markets also moved to discount expectations of further monetary tightening on the part of central banks.
The decision by the Reserve Bank of Australia (NGA) makes this organism is the first of the central banks of the Group of 20 countries in raising rates as it eases the global financial crisis. The initiative of the USA was a surprise to many analysts.
However, the markets had been full of speculation about a move of the entity, given the strength of recent economic data.
"The USA had become known that was coming to raise rates from their lows a little extraordinary, and now he has done," said Rory Robertson, interest rate strategist at Macquarie.

"It will be a gradual move from an emergency rate of 3.0 percent to 4 percent, still expanding," he added.It was the first increase of the USA since March 2008, but only removes a small part of the incentive of 425 basis points applied when the global credit crisis was at its worst.