RBA to Reveal Interest Rate Call, Economic Forecasts
The Reserve Bank is expected to keep interest rates on hold due to a spike in inflation.
Mortgage holders are unlikely to see a decrease in interest rates, as resurgent inflation will discourage the Reserve Bank from lowering them.
- Conflicting impulses of rising consumer prices and higher unemployment are pulling the RBA monetary policy board in opposing directions.
- Analysts at Nomura expect the bank to wait for more data before making any changes.
Since the last rates meeting in September, the key developments have been a sharp jump in unemployment in September and a much stronger-than-expected inflation print last week - Andrew Ticehurst and David Seif.
Author's summary: RBA expected to keep interest rates on hold.