Australia’s central bank kept its benchmark interest rate unchanged for an eighth month as the fastest economic growth in three years is yet to stoke inflation.

Reserve Bank of Australia Governor Glenn Stevens and his board left the overnight cash rate target at 6.25 percent, a six-year high, today in Sydney. The decision was expected by 26 of 27 economists surveyed by Bloomberg News. One predicted an increase.

Most economists expect the bank will wait until late this year or early 2008 before raising rates after Stevens said last month he has “additional time” to respond to inflation pressures from accelerating economic growth and a jobs boom. Reports yesterday showing retail sales fell for a second month and building approvals slumped in May suggest the bank doesn’t yet need to add to last year’s three increases in borrowing costs. (Bloomberg)