Rate forecast unchanged: NAB

Staff Reporter

NAB has left its rate forecast unchanged, predicting rates will rise before year’s end.

Last week, NAB chief economist Alan Oster altered the long term rate forecast to include an October rate hike.

Despite the RBA’s decision to keep rates on hold this month, Mr Oster said he would not change his outlook again.

Mr Oster expects rates to lift in either November or December and hit 5.5 per cent by mid-2011.

“There are enough straws in the wind for us to believe that the tightening phase may well begin sooner rather than later,” Mr Oster said.