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Friday, 09 January 2009

RBA to keep rates on hold

5/08/2008 6:20:00 AM.  | Kelly Fedor

The Reserve Bank is expected to leave interest rates on hold when it meets today.

Today's monthly board meeting comes a day after the release of new bureau of statistics figures which show housing prices have fallen for the first time in nearly three years.

It's another indication the Reserve Bank's tactic of increasing rates to slow the economy is having the desired effect.

It's prompted predictions from some economists that we could even see a rate cut this afternoon.

Most however, expect the official cash rate to remain at 7.25 per cent, at least for now.

"We do have to remember inflation is at a 16-year high, so the RBA is not going to be rushed into cutting interest rates," ANZ senior economist Katie Dean said.

"We think they are more likely to stay on hold at least one more month."
 

COMMENTS

Tuesday, 05 August 2008

Perhaps the RBA should remember "working families" own houses, and "working families" have superannuation (with investment in property)? My guess is that we will have some fairly unhappy Labor folk out there? Well done RBA & Rudd you fools - you have screwed it all again! Not since Whitlam have we seen such pathetic ideological government.

Posted by: Gareth Benson, Blacktown

 
 

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