Economists await release of RBA minutes
Economists are eagerly awaiting the release of the minutes from the Reserve Bank of Australia's (RBA) latest meeting, which took place earlier this month.
The report – which is due to be published on Tuesday (August 21st) should shed more light on the thought process behind the central bank's decision not to lower the national cash rate.
Interest rates were cut by 125 points between November 2011 and June 2012, but the RBA has been reluctant to make any further changes in the past two months – leaving the official cash rate at 3.5 per cent.
However, the minutes usually give an indication of how the RBA will act in future months and a few economists believe further rate reductions could be seen by the end of the year.
The demand for deposits has been particularly high recently, as banks and lenders have resisted the temptation to slash the rates attached to their products in an attempt to attract new customers.
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