An interest rate cut has been predicted by a selection of credit markets.
There could be an
interest rate cut by the Reserve Bank of Australia (RBA) next month.
This is according to various credit markets, which believe the European debt market issues could play a part, the Sydney Morning Herald reports.
Data from Credit Suisse has shown that there is a 19 per cent chance of the rates being slashed by the RBA, although this also declined to six per cent at one stage.
Rory Robertson, interest rate strategist for Macquarie, said that although he is not forecasting a rate rise, they may not change for a longer period due to the European problems.
He added: "The RBA almost certainly will be on hold for the next few months at least and perhaps for much longer."
Any rise next time out could encourage the organisations to do the same, as this month the National Australia Bank upped the interest rate on a range of its savings accounts by 0.25 per cent per annum and ANZ increased the rate by the same amount on a selection of its
bank accounts.
By Nate Sawyer
