The Reserve Bank of Australia will increase the interest rate again this year, economists have predicted.
A forthcoming
interest rate rise by the Reserve Bank of Australia (RBA) is all but certain to happen by the end of the year, it has been suggested.
Economists have predicted the move due to a stronger than expected retail trade and building approval figures which have "blitzed expectations", the Australian Associated Press reports.
ICAP economist Adam Carr called the latest figures - from the Australian Bureau of Statistics - "fantastic" and noted that it paints a "really good picture" of the country's economy.
He added: "Certainly there is very little chance the RBA's going to be sitting on their hands until the end of the year."
Earlier this month, the RBA left the rates unchanged at 4.5 per cent, as it pointed out that
Aussie credit conditions for a number of sectors were difficult.
Any possible future rise in levels may prompt banks to do the same, just as ANZ declared after the June RBA rise that it was set to up its rates on term deposits by 0.25 per cent.
By Mark Hornby
