Today’s meeting of the Reserve Bank of Australia (RBA) board is expected to result in a delay to the rate rise predicted last month. This gives some relief to the Australian public, who have endured 10 rate increases in five years.But while the RBA may not lift official rates, commercial banks such as the Commonwealth Bank and National Australia Bank have indicated they may raise interest rates on home loans to meet higher funding costs. Private increases are expected to relieve inflationary pressure until February 2008.
Analysts say decreased corporate profits, the strength of the Australian dollar, a deceleration in commodity prices and global concern over credit would also contribute to abating the rate rise.
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