RBA deputy says 'interest rates to rise globally'
At a question and answer session in Sydney, the banking official observed that the global economy is strong, noting that in the last year there was five per cent growth across the world.
However, he added that in this situation an increase in inflationary pressures may be expected.
"That is likely to be accompanied by rises in local interest rates," he asserted.
The cash rate in Australia has been rising since September 2009 after reaching a record low of three per cent in April that year.
However, the RBA has kept it at the 4.75 per cent mark since November 2010.
The board of the central bank is set to meet again on June 7th to discuss whether or not to push this to five per cent or higher.
Get more information on the latest Reserve Bank interest rates with Mozo.