Further cuts to interest rates are 'unlikely'

Mozo

Friday 17 February 2012

The likelihood of the Reserve Bank of Australia (RBA) sanctioning further interest rate cuts is slim, economists have suggested.

Official figures released earlier this week indicated that there has been a surprise upturn in the jobs market in the past month.

Indeed, an extra 46,300 roles were created across the nation and with this in mind, UBS chief economist Scott Haslem told the Herald Sun that the chances of the RBA cutting rates again are low.

"But a final near-term RBA cut on further hikes in bank lending rates or signs the Australian dollar above $US1.10 is constraining growth can't be ruled out," he added.

Aussies who have taken out home loans with one of the major banks will be hoping that the RBA goes against the grain and lowers rates again in March, as all four leading institutions have hiked their base rates in the past week or so.

The door was left open for them to do so after the RBA failed to lower interest rates in February.

Further cuts to interest rates are 'unlikely'

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