Aussie to RBA: Leave rates unchanged

Aussie Home Loans has urged the Reserve Bank to hold official interest rates at 3.5% at its meeting next Tuesday (December 1, 2009).

Executive chairman of Aussie, John Symond said, "While our economy in 2010 should show further improvement, credit is still in very short supply to both business owners and home buyers, posing a risk to employment.

"We are heading into the crucial Christmas retail season and a rate hike will hurt sales and create further concerns for households. The economy is recovering but is susceptible to any economic shocks, which continue to be felt overseas", he added.

"The Reserve Bank needs to be very cautious in lifting rates prematurely, having regard to the ongoing uncertainty and widespread economic problems still being experienced around the world."

The RBA has said that further gradual rate rises are likely should the economy continue to improve.

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