There will be five interest rate increases by the end of next year, a Reserve Bank of Australia insider has noted.
A Reserve Bank of Australia (RBA) insider has predicted there will be five interest rate rises by the end of 2011.
Paul Bloxham, who left the organisation a few weeks ago and is now the chief economist at HSBC, wrote in a note the RBA is set to increase the levels by 0.25 per cent before Christmas, the Australian reported.
He also went on to say that there would be four rises by the end of next year which would take the official cash rate - which currently stands at 4.5 per cent - up to 5.75 per cent.
Mr Bloxham stated that the country's economic resilience continues to be a surprise, but there are worries now that it is reaching its limits.
This follows on from the RBA hinting in its September minutes earlier this week that another rise is close.
And it previously observed during this past month that Aussie credit conditions are currently difficult, while home loan rates were fine in May, when it last increased the official level.
By Emma North
