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RB of Australia raises benchmark rate to 4.75%

AUSTRALIA - The Reserve Bank of Australia raised its benchmark interest rate for the second time in a month by a quarter percentage point to 4.75%. It is hoped this will put a damper on a housing boom and consumer spending that may fuel inflation.

French prosecutor recommends no trial for Trichet

FRANCE - The Paris prosecutor's office recommended last Friday that Jean-Claude Trichet, the governor of the Bank of France, should not be put on trial over the Credit Lyonnais bank scandal, thus easing his chances of succeeding Wim Duisenberg at the ECB.

Eurozone inflation falls but M3 grows

GERMANY - A marked drop in euro zone inflation in May strengthened beliefs that the ECB will hold fire on interest rates, although its key money gauge M3 moved further away from its benchmark of 4.5%, growing to 7.5% from 7.3% in March.

Argentina scraps key economic law

ARGENTINA - Argentine senators have ditched a controversial law that has been putting off international lenders. The IMF has made abolition of Argentina's so-called economic subversion law a condition for lending to the cash-strapped nation to restart.

BOJ's Hayami says forex must be watched closely

JAPAN - Bank of Japan Governor Masaru Hayami said on Thursday he wanted to closely watch moves in the foreign exchange market, adding the recent rise in the yen was due to caution on the U.S. economy and hopes for a recovery in Japan.

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