RBA deputy says 'interest rates to rise globally'

Recent comments by the Reserve Bank of Australia's (RBA's) deputy governor Ric Battellino may support the notion that a hike in interest rates is imminent.

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.

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