'Expect the RBA to raise rates further'

By Mozo ·

The Reserve Bank of Australia (RBA) is likely to raise the official cash rate at its meeting next week, a commentator has predicted.

Colin Brinsden, a finance writer for the Courier-Mail, said that rising house prices and the growing demand for credit could prompt the RBA to lift the cash rate by 25 basis points to 4.0 per cent at the meeting on March 2nd.

He added that in addition to such growth trends, this week had seen "stronger-than-expected" construction and capital expenditure data and "upbeat business investment plans for the next 18 months".

Rising rates will affect Aussies who choose to compare home loans and credit cards. However, Mr Brinsden also suggested that the RBA decision was not guaranteed.

JP Morgan chief economist Stephen Walters told the writer that after the RBA’s surprise decision to keep the official cash rate at 3.75 per cent this month, the decision next month could be "something of a coin toss".

This week, Aussie Home Loans was named as one of Australia’s top ten fastest growing franchises in BRW Magazine’s annual Fast Franchises list.

This article is brought to you by Mozo – Helping you compare credit cardsADNFCR-1761-ID-19641043-ADNFCR