Oz ups rate for 3rd month in row

SYDNEY: Australia's central bank raised its benchmark interest rate by a quarter percentage point for an unprecedented third straight month as evidence mounts that the nation's economy is strengthening.

Reserve Bank Governor Glenn Stevens increased the overnight cash rate target to 3.75 percent from 3.5 percent in Sydney, as forecast by 19 of 20 economists surveyed by Bloomberg News. The board won't meet again until February.

The nation's currency fell after Stevens signaled he may now pause, saying the board's "material adjustments" to borrowing costs are enough to keep inflation within his 2 percent to 3 percent target range. Rising consumer confidence, higher house prices and China's demand for resources such as iron ore from BHP Billiton Ltd are driving a "new upswing" in the economy that will last several years, the bank says.