No July rate increase - look to next year instead: ME Bank

Rate predictions are starting to roll in, with less than week until the Reserve Bank meets again to assess he current cash rate.

General manager markets for ME Bank, John Caelli, has been clear that they do not expect the RBA to change the rates at their July meeting next week.

“Growth remains moderate and consumer confidence has taken a hit following the Federal Budget,” said Caelli.

“The uncertainty over the Budget process will cloud the outlook for a period of time,” he said.

How long will we see stable rates for?

“The next likely rate change will be in the first half of 2015 and is likely to be up,” he predicted.

This appears to be in line with other market predictions, with some debating the timing of the next movement, however the majority agreeing that the next change will be an increase.

Here are the industry perspectives on June’s interest rate hold, for instance.

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