ACCI: RBA should hold interest rate

The Reserve Bank of Australia (RBA) has been urged to pause decisions to raise its interest rate any further by the Australian Chamber of Commerce and Industry (ACCI).

According to the organisation, there could be some international risks in hiking interest rates again, after having done so four times since October, and that the RBA should stave off until the second half of the year.

Greg Evans, director of economics and industry policy at ACCI, told reporters today (March 18th) that the RBA would be better off waiting to see how robust the economy is after government measures are implemented, according to the Sydney Morning Herald.

He said: "The Reserve Bank should take the opportunity to get a better handle on the economy to see to what extent that this is a private sector led recovery before it moves too aggressively on interest rate movements."

ICAP senior economist Adam Carr recently told the Australian Associated Press that the sharp drop in home lending will probably prompt the RBA "to sit back for a month to see what’s going on" regarding the interest rate.