No need to panic about interest rate rise, expert says

The next Reserve Bank of Australia interest rate rise could be in a few or even 12 months, one industry expert has predicted.

There is no need for people to worry about a forthcoming interest rate rise just yet, according to one industry expert.

Colin Brinsden, writing for the Australian Associated Press, said another increase could be a few or even 12 months away but something to look out for is the inflation readings on July 28th.

However, Nomura Australia chief economist Stephen Roberts noted he is predicting inflation to be "just about tolerable" which might encourage the Reserve Bank of Australia (RBA) to maintain the current cash rate until November.

But the consumer price index, which is set to be released in October, could also play a part in the rises.

Earlier this month, the RBA organisation announced it was leaving the rates unchanged at 4.5 per cent, compared to its 0.25 per cent increase at the beginning of May.

This prompted ANZ – which offers a range of credit cards - to up the level on its term deposits.

By Emma North