RBA puts interest rates on upward path

The Reserve Bank of Australia announced its third rate increase in as many months, hiking its cash rate by 25 bp to 3.75% as expected. The RBA noted in its press release that "global economy has resumed growth," and in China and much of Asia, the "recovery has been much quicker to date and prospects appear to be for good growth in 2010."

The downturn in Australia was relatively mild, and Australia's central bank was the first major central bank to begin reversing the monetary stimulus put in place.

Since the risk of a "serious contraction" has passed, per the RBA, monetary authorities have been gradually boosting rates.