Interest rates take a breather

The general consensus among most business economists is that interest rates have peaked. This is confirmed from a recent poll taken prior to last week's Reserve Bank's board meeting, whereby all but nine of 25 economists expect the RBA cash rate to remain at 7.25 per cent for the next six months. However, those economists with a Hawkish view predict that an above 0.8 percentage point jump in the upcoming March quarter consumer price index, might just be enough to entice the RBA to push another rate increase in May.

Source: The Australian Financial Review