Rate relief may be deferred

By Adam Smith | 5/09/2011 4:00:00 AM | 0 comments

Borrowers anticipating a rate cut when the RBA meets tomorrow may find themselves disappointed, a survey of economists has suggested.

The AAP survey of 12 economists has shown they unanimously expect the Reserve Bank to leave the cash rate untouched at 4.75%. While expectations of a rate cut had been building amid global economic uncertainty and fixed rate moves from lenders, Westpac now remains the only financial institution still predicting a downward rate move before the end of the year.

The economists surveyed by the AAP were divided on the RBA's next move. Five of those surveyed forecast a rate hike in the March quarter of 2012, while three said rates would move downward in that period.

Related stories:

'Panic' could bring major rate cuts

Next RBA move will be downwards: Westpac

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