/www.bloomberg.com/ By Gemma Daley
Canberra, Feb. 19. (Bloomberg) -- An index of economic indicators for Australia, a gauge of growth for the next six months, was little changed in December, suggesting the economy will slow this year.
The Westpac Banking Corp./Melbourne Institute's leading index rose 0.1 points from November. The index tracks nine gauges of economic activity -- including overtime hours, share prices, building approvals and telephone installations.
The index suggests economic growth will slow this year from its almost 4 percent annual growth in 2002, Westpac said, and the central bank will keep its benchmark interest rate at 4.75 percent for the rest of 2003.
``This puts little pressure on the Reserve Bank of Australia to move interest rates,'' said Bill Evans, global head of economics at Westpac. ``The current low interest rates are appropriate for a moderately slowing economy.''
The central bank has kept its benchmark interest rate unchanged at half a point above a 30-year low for the past eight months.
The leading index's annualized economic growth rate was 2.1 percent in December, which is below its long-term trend of 3 percent. That also suggests the economy will slow in coming months, Evans said.