A third consecutive cash rate rise could be on the cards from the Reserve Bank of Australia, one expert has said.
Concerns have risen regarding a third consecutive
interest rate rise by the Reserve Bank of Australia (RBA), one industry expert has suggested.
Chris Zappone, writing for the Business Day, said fears increased after the rate of inflation rose quicker than expected.
Aussie credit markets went up from one in three to one in two, which led 59 per cent of investors to speculate a hike was probable, according to data from Credit Suisse, although this recently declined to 49 per cent.
However, St George chief economist Justin Smirk noted that the consumer price index opinion from yesterday (April 28th) pointed out inflationary pressures are still a concern.
A 0.25 per cent increase by the RBA next week would take the official cash rate up to 4.5 per cent and would be the sixth 0.25 rise since October.
In March, the organisation made the change from 3.75 to four per cent, which sparked the Commonwealth Bank to announce plans to up its rates on two savings accounts - the NetBank Saver and Business Online Saver – by the same figure.
By Emma North
