Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Encouraging business conditions to curb rate falls

Staff Reporter 1 minute read

The RBA is unlikely to move on interest rates any time soon and the bottom of its interest rate cycle could be higher than expected, NAB has revealed.

Business conditions improved significantly in April, NAB said yesterday, with its monthly business survey revealing a 7 point improvement and a stabilisation of its confidence index.

“There is little doubt that the results of the April survey represent the most encouraging set of numbers for some time,” NAB chief economist Alan Oster commented.

While NAB conceded Australia faced a challenging 2009 it said the RBA had delivered the bulk of its emergency cuts and revised its bottom cash rate forecast up from 2 to 2.5 per cent.

“We now see the RBA in data watching mode,” Mr Oster said.

Advertisement
Advertisement

“The RBA now requires bad, and possibly worse than expected, data to move lower.”

As to the timing Mr Oster said the bank expected the RBA to remain on hold “for some time” while rates would start to rise towards the end of 2010.

 

Encouraging business conditions to curb rate falls
default
TheAdviser logo
default

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

more from the adviser
court gavel ta Court rules against bank for ‘unfair’ loan terms

The Federal Court has declared a number of loan contracts entered...

APRA RBA ta RBA, APRA sing different tune on serviceability buffers

APRA chair Wayne Byres has dismissed the need for a cut to the bu...

loanapplication Remodelled FHB scheme cops backlash

From 1 July, all applications for the FHLDS will require a Notice...

FROM THE WEB