SKIP TO MAIN CONTENT

Rate rise 'likely postponed'

Many economists say the RBA is unlikely to cut interest rates next week, which some hold partly responsible for the soaring performance of the Aussie dollar.

RBA_100802_L_aap_371287121

1 min read

Published

Updated


Skip to article content

Economists say weaker than expected building approvals figures could prompt the central bank to postpone an interest rate rise next month.

They say that's despite a tightening job market.

ICAP economist Adam Carr told AAP the building approvals data is quite a bit weaker than he had expected, and he doesn't think the RBA should - or necessarily will - be upping the interest rate next Tuesday.

He also says building approvals declined in every month bar two this year, with the drop in August at 4.7 per cent.

The figures come amid debate over the direction of the Aussie dollar. In an interview with ANZ currency strategist Tony Morris, SBS's Ricardo Goncalves says learns that interest rates, along with demand for resources and commodities, is pushing the Aussie higher - and ANZ predicts it may hit parity in 2011.

News that makes sense

Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.


Get SBS News straight to your inbox

Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Stream now

Watch the latest news videos from Australia and across the world