Interest Rates

As we close out 2011 and reflect on the year that was, the only thing that appears predictable in our current economic environment is unpredictability. Part of the reason for this is that it is near impossible to read the minds of policy makers, but attempting to do so, see to occupy an inmsordinate amount of the time of financial commentators and economists.

A TOP economist and the Federal Opposition have urged the Reserve Bank to cut the cash interest rate by at least 0.25 percentage points to avoid recession.

Nearly all economists seem to agree that interest rates will be put on hold for at least a couple of months following lower than expected inflation figures for the December quarter last year:

The Reserve Bank to Stay Put On Rates for Now.

Interest Rates to Remain on Hold according to Commsec Economist. It looks like low CPI figures may result in a reprieve on rates. Hopefully this is the case.