There may not be another immediate interest rate rise, according to one industry expert.
The Reserve Bank of Australia (RBA) could pause now on another
interest rate rise.
This is according to Citigroup director Paul Brennan, who interpreted the organisation's latest monthly Monetary Policy announcement that a break may occur after a "big adjustment", the Australian Associated Press reports.
He added it was "consistent with the last statement" in that the figure change was a move back to average levels.
But he outlined two reasons as to why he thought the rate increased, stating it was "quite disappointing", although they have had to hike up the inflation predictions in every quarterly report.
Mr Brennan's other reason being "they want to return to neutral given that the economy has been a lot stronger and is heading back to normal growth".
Before the 0.25 per cent rise to 4.5 per cent had taken place on May 4th, many economists were expecting a sixth rise in as many months, the Herald Sun recently reported.
The Commonwealth Bank – which offers a range of
credit cards – is set to increase the rate on its savings account after the RBA's cash rate hike.
By Joe Letts
