UK house prices rose 0.1 percent in May, failing to bounce back from the biggest drop in seven months in April, according to Halifax. The increase follows a 1.4 percent decline in April, Halifax, the mortgage unit of Lloyds Banking Group Plc (LLOY), said in a statement in London on Tuesday. In the three months through May, values fell 1.2 percent from the previous three months. The average cost of a home in May was 160,519 pounds ($262,914). “House prices continue to drift modestly downwards as measured by the underlying trend,” Martin Ellis, a Halifax economist, said in the statement. “Low earnings growth, higher taxes and relatively high inflation are all putting pressure on household finances.” The International Monetary Fund said on Monday that the housing market remains “soft” and is one of the risks to the U.K. recovery.

-------------------- Australia’s CB holds key rate, sees little urgency to increase
The Reserve Bank of Australia left its benchmark interest rate unchanged for a sixth straight meeting and signaled little urgency to increase borrowing costs as a stronger currency helps contain inflation. Central bank Governor Glenn Stevens on Tuesday held the overnight cash rate target at 4.75 percent in Sydney, as forecast by 23 of 28 economists surveyed by Bloomberg News. In a statement after the decision, he said “inflation will be close to target over the next 12 months.” The Australian dollar reversed earlier gains and investors slashed bets the RBA will raise rates in the third quarter. The nation recorded its weakest job growth since 1999 in the first four months of this year as manufacturing, services and construction lag behind a mining industry that is expanding to meet Chinese demand for raw materials.
--------- Swiss inflation muted in May, CB seen on hold
Swiss inflation picked up a notch in May from a year earlier but remained well within the central bank's comfort zone, indicating rate-setters are unlikely to tighten policy at a review next week. Consumer prices rose 0.4 percent from a year ago compared to 0.3 percent in April, and were flat compared with the previous month, the Federal Statistics Office said on Tuesday. The readings were in line with average forecasts by analysts polled by Reuters. The SNB aims to keep inflation positive but below 2 percent. ""The Swiss National Bank doesn't need to act in June,"" said VP Bank chief economist Joerg Zeuner. ""The lessening dynamism of the recovery will also mean that there is no danger of inflation (pressure) in the second half of the year."" The central bank announces its interest rate decision on June 16.