There were no surprises emerging from today’s Reserve Bank meeting, with the board leaving interest rates on hold for the 11th straight month.
This was the situation predicted by most economists.
In a public statement on September 7th, RBA Governor Glenn Stevens said that it was best to ‘take a breather’.
Most economists now agree that rates won’t rise this year, with many expecting no upward movement for most of 2012.
In fact, the prediction is for, if anything, a drop within the next 6-8 months.
However, chief economist of HSBC, Paul Bloxham, has said there’s not enough proof that the Australian economy has deteriorated to merit a reduction in rates, with still heavy demand for Australia’s products. The recent drop in the Australian dollar is also positive for our export and tourism trades.
Watch this space. some are predicting an interest rte cut next month!
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