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You are here: Home Banking & Saving Latest News Double interest rate rise in coming year 'is not a lot'

Double interest rate rise in coming year 'is not a lot'

Double interest rate rise in coming year 'is not a lot'

Considering the economic outlook, two interest rate rises in the coming year is not a lot, one publication has suggested.

A double interest rate rise by the end of the year will not be a lot, it has been suggested.

According to the Australian Associated Press, the two increases - one quarter of a percentage point each - is not a great deal considering the economic outlook.

But if the recovery - which is growing at a rate equivalent to 3.8 per cent if it continues for a year - keeps going at the same pace then the unemployment level will drop from its August rate of 5.1 per cent, the Treasury economists expect.

However, the publication observed that if the world did slip back into a recession then the rates would fall sharply from their current 4.5 per cent, which the Reserve Bank of Australia maintained at the start of September.

Earlier this month, the group pointed out that Aussie credit conditions were tough, although it noted that home loan rates were fine in May - when it last upped the cash level.

By Emma NorthADNFCR-2135-ID-800084609-ADNFCR
Monday, 27 September 2010 00:00
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