No rate cuts are likely until May

The Reserve Bank will probably keep interest rates unchanged in April 2015 because of good spending data released in March. Economy-wide spending grew in February according to the Commonwealth Bank’s Business Sales Indicator survey.

CommSec economist Craig James said the Australian economic outlook remains positive so the Reserve Bank is likely to hold off on another rate cut until May.

“The Reserve Bank will consider cutting rates at the next few Board meetings,” said James.

Source: Broker News

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