Interest rates are unlikely to change in the near future if the Reserve Bank is to be believed. It was only 3 months ago that the markets were pricing in expectations of interest rate cuts of 1.5% or more, but that prospect appears shelved, unless any major global upheavals occur.
Glenn Stevens was quoted in SMH today as:
“Reserve Bank governor Glenn Stevens says the interest rate setting is right for the moment, reiterating that economic growth is likely to be close to trend and inflation well contained over the next few years.
Mr Stevens told lawmakers this morning in his twice-yearly parliamentary testimony that the bank was well aware of the patchy nature of the economy, noting the investment boom in the resource sector and the struggling retail sector.”
Read more: http://www.smh.com.au/business/interest-rates-where-they-should-be-rba-20120224-1trnk.html#ixzz1nFvOLaQP
