Australia 'is moving into a rising rate environment'

Mozo

Thursday 05 May 2011

The country is beginning to enter a period in which interest rates are likely to start rising again, according to the chief executive of the National Bank of Australia.

Rising rates likely in the future, says NAB chief executive

Cameron Clyne told ABC News that it was only a matter of time before the Reserve Bank of Australia decided to hike rates further.

Earlier this month, the nation's central bank announced that the cash rate of 4.75 per cent would be maintained for at least another month, which means it has remained unchanged throughout 2011.

Although Mr Clyne asserted that this pattern will probably remain the same for some months to come, he warned that increases are likely to be experienced.

"We are moving into a rising rate environment over the next couple of years," he asserted.

His comments echo those of Deloitte Access Economics partner Chris Richardson, who asserted in a paper released last month that rate increases will be needed this year to curb inflation, the Herald Sun reported.

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