Rates likely to be put on hold

Homeowners look likely to be spared another interest rate rise when the Reserve Bank board meets today, but a spray of new data suggests future rate increases remain on the cards.

Volatile financial markets, caused by problems in European economies, are expected to see the central bank hold the cash rate steady at 4.5 per cent for a second month in a row.

But data released yesterday, showing three per cent-plus annual inflation, solid demand for workers in an already strong labour market, and a record number of monthly car sales, will give Reserve Bank board members something to think about.