Rates on hold as spending falls

The prospect of an interest rate cut in October has receded. The RBA is expected to closely examine figures to be released on Thursday on credit card spending and debt levels. Credit card debt has grown by 4.7 per cent in the last year, the slowest rate of growth for 14 years. New housing commitments are expected to fall 3 per cent. Household spending fell in the June quarter by 0.1 per cent, the first fall in more than 15 years. Retail sales and employment numbers released last week were stronger than expected, except in NSW. The governor of the RBA, Glenn Stevens told a parliamentary committee last week that the central bank was likely to keep easing rates, but would not say when.

Source: The Australian Financial Review