ANZ CEO predicts interest rates 'will stay steady then rise'

Mozo

Friday 08 April 2011

Interest rates are likely to remain steady for the near future, but a rate increase is expected at some point, according to ANZ Banking Group chief executive officer Mike Smith.

Interest rates 'will stay steady for the time being'

The expert observed that the country is currently in an "upward rate cycle", but suggested that it would be hard for the ANZ to raise its rate out of cycle with the movements of the Reserve Bank of Australia.

"I think the Australian dollar is really doing the work of the Reserve Bank for them," he said at a Trans-Tasman business lunch in Sydney.

He stated that the government needs to make changes to the tax system as its main priority.

The second most important step would be to improve productivity and innovation in the nation, Mr Smith asserted.

Earlier this week, the RBA announced that the cash rate would remain at the 4.75 per cent level set in November last year.

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