Beyond Tomorrow Finance

Mobile Mortgage Broker

  • -:¦:-Welcome-:¦:-

    I hope you find some interesting and helpful tips, articles and updates!

    Enlisting a Mortgage Broker to guide you through the maze of home and investment loans will save you time, money and stress!

    You can drop me an email or give me a call if you would like any help or have any questions.

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 1 other follower

  • Archives

  • Meta

  • Advertisements

Will RBA put the brake on rate hikes?

Posted by Tamara McDowell on April 28, 2010

Leading economists are predicting an extended pause on official interest rate rises as inflation pressures ease across the Australian economy.

An AAP survey of financial market economists shows that inflation is expected to rise just 0.7% for the quarter, putting the annual figure at 3%. This would be inside the RBA’s target band and well down from the peak of 4.7% 18 months ago.

Governor Glenn Stevens indicated that tomorrow’s release of the March quarter CPI figure would have a significant impact on the bank’s decisions over the next three months.

Reserve Bank of Australia Governor Glenn Stevens has told a business forum that inflation is now close to target and interest rates were falling back to normal levels.

“The Reserve Bank has moved early to raise the cash rate to levels that deliver interest rates for borrowers and depositors more like those that have been the average experience over the past 10 to 12 years,” Mr Stevens said in Toowoomba last week.

With interest rates now close to average, this may be a sign interest rate rises will cease, at least for now.

Access Economics warned, however, that inflation could build to 3.2% in 2011, driven by business activity and wage growth.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: