The interest rate will not be increased by the Reserve Bank of Australia next week, one financial commentator has predicted.
The Reserve Bank of Australia (RBA) is not set to increase the
interest rate next week, according to one industry expert.
Terry McCrann, financial commentator for the Herald Sun, noted that the organisation will not even make the move if the GDP figures show that Australia has a booming economy.
He added: "RBA chief Glenn Stevens would not want to hike - with the banks quite possibly adding their bit - into the current political gridlock."
But Mr McCrann pointed out that the group is not likely to reduce the rates anytime soon either, although it would do if there was some sort of global economic meltdown.
Last month, the organisation kept the rates the same at 4.5 per cent for the third consecutive month after increasing them in May.
But the RBA observed that
Aussie credit for a selection of sectors remained difficult and the minutes of its August meeting revealed that the group believed interest rates on home loans were about right in May.
By Emma North
