The Courier-Mail

In­ter­est rates likely to hold


THE Re­serve Bank is ex­pected to keep rates on hold to­day, de­spite global mar­ket volatil­ity and weak do­mes­tic in­vest­ment fig­ures.

When the cen­tral bank holds its monthly board meet­ing, it is widely ex­pected to keep the cash rate at a record low of 2 per cent, where it has s stood since May.

Timo Henckel, from the A Aus­tralian Na­tional Univer­sity ty’s Col­lege of Busi­ness and Eco­nom­ics, says wild swings on global stock mar­kets have made in­vestors edgy, the eco­nomic news com­ing out of China is not favourable, and fig­ures last week showed do­mes­tic pri­vate in­vest­ment had plum­meted.

“On the other hand, US growth surged to 3.7 per cent an­nu­ally and fears of a debt cri­sis in the eu­ro­zone have abated,” Dr Henckel said.

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