- February 9, 2011
- Posted by: admin
- Category: Enconomy, House prices, Interest rate
The recent flood disaster could stop the Reserve Bank from lifting rates in the second quarter.
According to NAB’s Monthly Business Survey, released yesterday, the Board could postpone the next rate hike for quite some time because of the flood disruption.
The RBA will be watching cost pressures during reconstruction phase. But while the floods may force the Board to delay the next rate hike.
I expect the cash rate to peak to peak at 5.25 percent in this interest rate cycle
Buyer confidence had dropped dramatically in the aftermath of the natural disaster, but preliminary indications suggest confidence is starting to rebound nationally.
As such, Australian growth forecasts remain presently unchanged.