This week’s Business Spectator column.
posted on 26 July 2008 by skirchner
in Economics, Financial Markets
(1) Comments | Permalink | Main
Stephen, I believe you are now the only person in Australia calling for higher interest rates…
RBA tipped to leave interest rates steady
THE Reserve Bank is expected to leave interest rates on hold next week amid further signs that domestic demand is slowing.
None of the 19 economists surveyed by AAP expect the central bank to raise the official cash rate at its August 5 board meeting.
If they’re right, that means interest rates will remain unchanged at 7.25 per cent for the fifth successive month.
The RBA board meets on Tuesday morning in Sydney and the outcome will be announced at 2.30pm (AEST).
However, two economists are tipping a rate cut by Christmas, while nine are predicting rate relief in the March quarter of 2009 as Australia’s economy weakens.
The Commonwealth Bank is alone in expecting an interest rate rise by the end of 2008, based on the likelihood that falling petrol prices will spark a recovery in consumer spending.
Less than a fortnight ago, ANZ was pencilling in rate rises in August and November.
But Australia’s fourth biggest bank now expects the RBA will leave rates unchanged through to the March quarter.
Are you feeling a bit of a goose?