Economists pencil in August rate rise

Economists pencil in August rate rise

by 0 comments

Matthew Sullivan

The Reserve Bank of Australia is widely expected to raise the official cash rate 25 basis points in August, new research has revealed.

According to the latest NAB Monthly Business Survey, the RBA will be forced to raise the cash rate come August in a bid to pre-empt any unanticipated cost pressures.

NAB’s chief economist Alan Oster said the Australian household and labour market will be significantly stronger by August, justifying a 0.25 per cent rate hike by the RBA.

“We have maintained our end point target cash rate at 5.25 per cent, to be reached in November 2011,” Mr Oster said.

“Any tendency for wage pressures to increase and become embedded in inflation expectations would see the RBA adopting a more aggressive monetary policy stance than we have assumed.”

Matthew Sullivan

The Reserve Bank of Australia is widely expected to raise the official cash rate 25 basis points in August, new research has revealed.

According to the latest NAB Monthly Business Survey, the RBA will be forced to raise the cash rate come August in a bid to pre-empt any unanticipated cost pressures.

NAB’s chief economist Alan Oster said the Australian household and labour market will be significantly stronger by August, justifying a 0.25 per cent rate hike by the RBA.

“We have maintained our end point target cash rate at 5.25 per cent, to be reached in November 2011,” Mr Oster said.

“Any tendency for wage pressures to increase and become embedded in inflation expectations would see the RBA adopting a more aggressive monetary policy stance than we have assumed.”

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent's commitment to clientele built him a 25k-strong client base

In this episode of Secrets of the Top 100 Agents, host Tim Nearly talks to RT Edgar’s Glen Coutinho who ranked number six in this year’...

View all podcasts

How effective are testimonials as a marketing tool?

Not effective at all
Somewhat effective
Very effective
They are the most effective tool there is
Do you have an industry update?