Rates will rise if financial trends hold: RBA

Rates will rise if financial trends hold: RBA

The Reserve Bank of Australia has flagged an increase in interest rates if the international economy continues at its current trajectory.

The minutes of the RBA's October board meeting, released today, indicate that the board considered raising the cash rate above the current 4.5% this month.

The reasons for and against a rate hike are currently “finely balanced,” the minutes say, but the board ultimately decided not to raise the rate as it would effectively be pressuring financial conditions at the margin.

But signs of slow credit growth, the near-parity Australian dollar and a still uncertain international outlook may force an increase in interest rates soon, the minutes state.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Interest ratesReserve Bankcurrency exchange ratesrates

More about RBAReserve Bank of Australia

Show Comments