Market split over interest rate decision
Tuesday, April 07, 2009
The market is spilt as to whether or not the Reserve Bank will cut interest rates later today.
Many analysts believe that the cash rate will remain steady at 3 and a quarter per cent.
The argument for no rate cut is that Australia is still one of the better performing economies - comparatively, among developed countries.
And the RBA will want to hold onto some fire power if the data does start to turn ugly, especially if unemployment starts to spike.
The policy makers will also want to gauge the impact that the latest round of stimulus checks is having on the economy, before making a move.
Some economists, however, say we could see a move today.
Bigpond News
