Since crisis, Australia first advanced economy to lift rates

Australia on Tuesday became the first advanced economy to raise
interest rates since the global financial crisis and promised more
rises to come, boldly declaring the risk of recession over. The
central bank announced a rise of 25 basis points to 3.25 percent,
lifting rates off a 49- year low after an aggressive round of cuts
credited with helping fight off the worst global downturn since the
Great Depression. "That basis for such a low interest rate setting
has now passed, however," Reserve Bank of Australia (RBA) governor
Glenn Stevens said in a statement. "With growth likely to be close to
trend over the year ahead, inflation close to target and the risk of
serious economic contraction in Australia now having passed, the
Board's view is that it is now prudent to begin gradually lessening
the stimulus provided by monetary policy." Australia is the only
major Western nation to avoid a recession in the worldwide slump and
posted growth of 0.6 percent in the three months to June -- the best
in the developed world. The RBA had slashed the rate from 7.25
percent last September to 3.0 percent in April, the lowest since
1960 , while the government unveiled a massive 70 billion dollar
(61.4 billion US) stimulus to keep the economy turning.