Expect an Australian Interest Rate Increase This August

Submitted by Craig Strzelecki on 20 June, 2006 - 12:52

Expect the Reserve Bank of Australia (RBA) to raise official interest rates this August. That's if you take JP Morgan's view of things, with the broker expecting the RBA to raise rates to 6 per cent this August - sooner than was previously expected (A rate rise in September). Meanwhile Commonwealth Bank has maintained their view that the RBA doesn’t need to raise rates further and TD Waterhouse as well as HSBC think that rate raises may be on the board next year.