RBA rate rise 'expected'

Another Reserve Bank of Australia interest rate increase is likely to happen next week, according to one expert.

The Reserve Bank of Australia (RBA) is expected to increase the interest rate at next week's meeting, according to one industry expert.

Michael Blythe, chief economist for Commonwealth Bank – which provides the Commonwealth Platinum Card – said he expected a rise of 25 basis points at the next meeting in March, the Australian Associated Press reported.

Australians are expected to be even more in the know when business investment information – due this week – gives them a better idea of what could happen.

People with savings accounts could be affected if the predictions of an increase become reality and experts have forecasted a rise in capital expenditure of up to 1.5 per cent for the last quarter of 2009.

These predictions come after Peter Martin, reporting for the Age, said at the start of February that he thought the RBA had pencilled in more rate hikes for the coming months.

By Joe Letts