Interest rates up again as Aussies stage recovery

Australia today raised its interest rates for the third month in a row as the country's economy leads the bounce back to recovery.

The Reserve Bank of Australia lifted its main interest rate by another 0.25% to 3.75% in a move widely predicted by analysts.

"In Australia, the downturn was relatively mild, and measures of confidence and business conditions suggest that the economy is in a gradual recovery," Reserve Bank Governor Glenn Stevens said in a statement explaining the rate decision.

"Public infrastructure spending is starting to provide more impetus to demand," he said.

Australia survived the economic crisis thanks to its huge deposits of natural resources and £23 billion of government stimulus spending.