Possible rate freeze until April
(6 December 2010 – Australia) Soft economic indicators and nervous retailers may be enough for the Reserve Bank of Australia to hold interest rates until April.
With the regulatory authority due to meet this week, many analysts are expecting no change to the official cash rate.
AMP Capital chief economist, Share Oliver, told The Australian newspaper that the Reserve Bank’s governor Glenn Stevens has indicated that the current level of interest rates is appropriate for the 'period ahead', given the additional increases in bank lending rates last month and the strong Australian dollar.
'We don't anticipate the next tightening to come until April at the earliest.
'The soft patch in the economy shown in recent data also supports the case for interest rates staying where they are for now.'
Economists claim to see 'clear signals' from the RBA that rates will not be moving for some time.
AMP Capital chief economist, Share Oliver, told The Australian newspaper that the Reserve Bank’s governor Glenn Stevens has indicated that the current level of interest rates is appropriate for the 'period ahead', given the additional increases in bank lending rates last month and the strong Australian dollar.
'We don't anticipate the next tightening to come until April at the earliest.
'The soft patch in the economy shown in recent data also supports the case for interest rates staying where they are for now.'
Economists claim to see 'clear signals' from the RBA that rates will not be moving for some time.
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