Dynamic Business

Economists are predicting the Reserve Bank will leave interest rates on hold, when the board meets on Tuesday.

Some 11 economists surveyed by AAP believed the cash rate will stay at the 49 year low of 3 percent for some time.

“The RBA appears to have no intention of reducing the cash rate any further,” said Matt Robinson, an economist with Moody’s Economy.com.

Treasurer Wayne Swan has told Channel 9 that while interest rates will remain on hold for the time being, they will start to rise as the economy recovers from the global recession.

“Rates are at the lowest levels in over 40 years, so it is obvious that some time in the future rates will certainly rise and the Reserve Bank will take that decision,” he said.

“For the time being the Reserve Bank has said that we still have a difficult outlook and it takes that into account when it’s setting the future of rates.”

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