Vote: Will rates move next week?
Investors are keenly watching to find out whether interest rates will change next week, with the Reserve Bank readying for their first interest rate decision meeting of 2014. Currently, the interest rate sits at 2.5% and has sat this way since it was brought to this point in August 2013.
Today, the experts unanimously predicted that, basically, not much is going to happen next week.
The economists have been undecided, with predictions at the close of 2013 seeing NAB believing that the official cash rate will be cut to 2.25% by the middle of this year, while Westpac thinks there will be two cuts sometime over 2014, bringing us to 2%.
Yesterday, the Real Estate Institute of Australia explained their expectations for rates to be kept on hold.
REIA president Peter Bushby said that the consumer price index rose by 0.8% in the December quarter, with the annual inflation rate sitting at 2.7%.
“These figures are well within the RBA’s target zone of 2% to 3%,” he said.
{module What do you think is going to happen at the RBA meeting next Tuesday?}
Vote and send your thoughts to: jduke@propertyobserver.com.au
