RBA interest rate rise 'on the cards'

Economic commentators say the comments of a government official signal further interest rate hikes from the Reserve Bank of Australia (RBA) next week.

RBA deputy governor Ric Battellino spoke at a housing conference in Melbourne recently and his comments have led to murmurings in the financial community.

The RBA monetary policy meeting is scheduled for next week and Mr Battelino’s assertions that the economy is improving has implied to some that the interest rate will rise, the Herald Sun reports.

"With the economy having only recently entered a new upswing, it is reasonable to assume that we will see this growth extended for a few more years yet," Mr Battlino remarked.

This, combined with Australian Bureau of Statistics figures, which revealed an increase in public sector building, has confirmed to some that next week will see a rise from the current level of 3.5 per cent.

According to the Australian, this could benefit those with savings accounts, since a higher interest rate means a better return on the money.

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