RBA to Reveal Interest Rate Call, Economic Forecasts
The Reserve Bank is expected to keep interest rates unchanged due to a recent spike in inflation.
Mortgage holders are unlikely to see a decrease in interest rates, as resurgent inflation will likely discourage the Reserve Bank from making any changes.
- Rising consumer prices and higher unemployment are conflicting factors influencing the RBA's monetary policy decisions.
- Analysts at Nomura predict the bank will wait for more data before making any changes.
Conflicting impulses of rising consumer prices and higher unemployment are pulling the RBA monetary policy board in opposing directions.
Key developments since the last rates meeting in September include a sharp jump in unemployment and a stronger-than-expected inflation print.
Author's summary: RBA expected to keep interest rates unchanged.