Aus PM welcomes RBA decision not to raise rates

AUSTRALIA - Prime Minister John Howard has welcomed the Reserve Bank of Australia's decision not to increase interest rates at its meeting today.

"I think it's a good decision, a very good decision," he told reporters in Perth.

Mr Howard said he was not surprised by the Reserve Bank's decision because of Australia's low inflation rate.

"We therefore should continue to have low interest rates but that doesn't mean to say there won't be some variation at some time in the future," Mr Howard said.