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.