'Prudent' RBA likely to raise rates again next month

Speculation is growing that the Reserve Bank (RBA) will raise interest rates again next month.

A report by International Business Times noted that at its board meeting earlier this month, the RBA argued that it would be "prudent" to proceed with another interest rate hike.

The report added that this was the third time in seven months the bank used the word "prudent" or a variant to justify a rate rise, suggesting that the RBA remains committed to putting up rates if it is in the interest of economic stability.

It observed that AMP’s chief economist, Dr Shane Oliver, has said it will be a close call as to whether the next hike comes in May or June "and partly depends on next week’s inflation data".

However, NAB has already gone on record to say it expects a rate rise next month, the report said.

Rising rates have put increasing pressure on Australians who wish to compare home loans and other borrowing facilities. This week, home loan expert John Symond told the AAP that consecutive rate rises have led to a fall in consumer spending and mortgage demand.

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