Australia raises rates for second month in a row

Australia's central bank hiked interest rates by 25 basis points for a second successive month on Tuesday, saying the improving economic outlook and expected growth in Asia justified the move.
Central bank governor Glenn Stevens said the bank had decided to up the official cash rate to 3.50 percent, its highest level since February, citing "noticeably better" conditions for Australia's major regional trading partners.
"Growth in China has been very strong, which is having a significant impact on other economies in the region and on commodity markets," Stevens said.
"For Australia's trading partner group, growth in 2010 is likely to be close to trend."
Australia last month became the first advanced economy to raise interest rates since the global financial meltdown, declaring the risk of a recession over and lifting rates from 50-year lows.
The interest rate rise comes after the government on Monday sharply lifted its economic forecasts, flagging growth of 1.5 percent instead of a 0.5 percent contraction and indicating that unemployment will peak at a relatively modest 6.75 percent.