No RBA rate cut expected this month

Written By Unknown on Senin, 04 Maret 2013 | 23.53

THE Reserve Bank of Australia is widely expected to keep the cash rate unchanged when its board meets on Tuesday.

All 13 economists surveyed by AAP said the central would not reduce the cash rate from its current level of three per cent.

HSBC Australia chief economist Paul Bloxham said business spending figures, released last week, showed there was a lot of investment in the pipeline that would stimulate the economy for months to come.

"The continued rise in mining investment, as (the building of) large LNG (liquefied natural gas) projects continue, should support growth, which should give the RBA more time to see the impact on the non-mining sectors of the cuts it has already delivered," he said.

Nine of those economists surveyed by AAP expect a rate cut some time in the next six months.


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