Pause in rate rises expected
Reserve Bank governor Glenn Stevens is thought to be preparing to announce a pause in rate rises when he speaks in Sydney later this week. The RBA has increased the official cash rate from 3.0 per cent last year to 4.5 per cent now. The board elected not to raise interest rates when it last met in Sydney last week.
AMP Capital Investors chief economist Shane Oliver wrote this week that "A speech by RBA governor Glenn Stevens is likely to confirm that while the bank still retains a tightening bias interest rates are likely to remain on hold for a while." Official housing finance data for April is released on the same day, Wednesday and is expected to show a two per cent drop, following a 3.4 per cent decline in March, as new loans decline after a string of recent interest rate rises.
Source: Sydney Morning Herald