RBA: There is still uncertainty over interest rates

The Reserve Bank of Australia (RBA) has asserted that there is still a level of uncertainty concerning interest rates.

It stated while there are promising signs concerning the economy, it would be too soon at the moment to create a rate hike.

As a result, it said it would wait for more concrete financial reports before being confident enough to raise the interest rates.

This is the sentiment offered by another institution, ANZ, which stated it predicts that only an improvement in economic indicators would prompt a climb in interest.

Economist at the financial centre Riki Polygenis explained the bank would impose its first rise next year, which may be good news for those looking at their savings’ interest rates.

"Given the uncertainty surrounding the near-term outlook, our base case therefore remains for the first hike to come in February 2010," he said.

It was asserted this week that the low interest rates have impacted on the insurance industry, which may have to boost its premiums as a result of disappointing returns, according to KPMG.

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