More reason for the Reserve Bank of Australia to raise the interest rates has emerged, one industry expert said.
There is a bigger cause for the Reserve Bank of Australia (RBA) to increase the
interest rate next week, according to one industry expert.
The Age's Chris Zappone believes this to be the case after inflation rose by 2.5 per cent in the year to March – a rise of 1.9 per cent in the year to February, Business Day reported.
Annette Beacher, senior strategist at TD Securities – a research company – said inflationary pressures are building up "ahead of steam".
She added: "Australia will be testing the speed limits of the economy sooner rather than later."
Ms Beacher predicted the RBA would put the cash rate up twice in May and June.
At the beginning of March the organisation increased the rate by 0.25 per cent to four per cent overall, which sparked some banks into action.
Commonwealth Bank – which offers a range of
credit cards – planned to up the rates on two of its savings accounts - the NetBank Saver and Business Online Saver - after hearing of the RBA's hike.
By Mark Hornby
