Australia resumed its monetary tightening on Tuesday. AFP/CNA reports:
Australia's central bank Tuesday lifted interest rates for the first time since May, hiking its cash rate by 25 basis points to 4.75 per cent as it warned of inflationary concerns.
Reserve Bank of Australia (RBA) governor Glenn Stevens said despite recent data indicating consumer prices had moderated in 2010, "the risk of inflation rising again over the medium term remains."
Meanwhile, India kept up its recent pace of monetary tightening. Again from AFP/CNA:
India's central bank on Tuesday raised benchmark interest rates by 25 basis points, its sixth hike since the start of the year to curb rising inflation in the country's booming economy.
The Reserve Bank of India (RBI) raised its main repo rate -- the rate at which it lends to commercial banks -- to 6.25 per cent. The reverse repo rate -- the rate it pays to banks for deposits -- was increased to 5.25 per cent...
But the bank said it expected to hit the pause button on further rises.
The acceleration in the global manufacturing sector may be giving central banks some confidence in the strength of the global economic recovery.
Euro zone manufacturers boosted their output in October at a faster pace than previously estimated, a business survey showed on Tuesday, with Spain and Ireland both recovering while Greece continued to struggle.
The Markit Eurozone Manufacturing Purchasing Managers Index (PMI) rose to 54.6 in October, revised up from the earlier estimate of 54.1 and comfortably higher than the final reading of 53.7 for September.