Interest rates 'likely to rise in April'

An interest rate rise next month is likely, thanks to a series of new figure suggesting that Australia is heading towards recovery, it has been claimed.

According to the Herald Sun, economists are predicting that the central bank will raise interest rates by 25 basis points.

Speaking to the newspaper, Macquarie interest rate strategist Rory Robertson said: "All in all, the latest data shows the Australian economy [is] in very good shape, allowing the Reserve Bank of Australia (RBA) to hike again in April if it pleases.

"It’s now a line-ball call; indeed, if you put a gun to my head… I’d guess that the RBA is going to hike again by 25 basis points in April."

Currently the RBA’s base interest rates stands at four per cent, having increased by 100 basis points since October 2009.

Earlier this week, Westpac and the Melbourne Institute reported that the index of consumer sentiment in Australia rose 0.2 per cent in March from February, despite the rising base interest rate.

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