‘Interest rates on hold until August’
Saturday, July 2nd, 2011 - 12:56 pm - Property Management
THE Reserve Bank of Australia is expected to hold interest rates steady when it meets tomorrow but a hike is tipped next month to temper the effect of the aggressive growth of the mining boom.
Economists have widely agreed the RBA would keep the cash rate at 4.75 per cent tomorrow but HSBC economist Paul Bloxham said recent RBA announcements reaffirmed the view that rates would need to rise by more than 50 basis points over the next 12 to 18 months to contain inflation, The Australian reports.
“We think the next hike will be August and are still calling for 100 basis points by mid-2012,” he said.
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