ANZ: Interest rate rise unlikely before March 2011

The Reserve Bank (RBA) is unlikely to raise interest rates before March or even April next year, it has been predicted.

New Australian Bureau of Statistics data shows that economic growth remains sluggish, with house prices slightly up but private sector borrowing still weak.

The figures have prompted many analysts to predict a hiatus on further rate rises for the next few months, with ANZ senior economist Katie Dean suggesting there is only a slim chance of a hike before April.

Speaking to BusinessDaily, she said: "There was nothing in the data that would provide any ammunition for the RBA to lift rates before at least the second quarter of next year."

Meanwhile, Commsec economist Savanth Sebastian told the Herald Sun that forward- looking data had shown "that growth is likely to be subdued in the near term".

This, he said, means that rates are likely to remain on hold for the next few months "to support investment and activity".

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