Major predicts rates will rocket in 2013

by Caroline Dann16 Aug 2012

NAB is prediciting the cash rate will rise in 2013, after a period of stability with little to no cuts.

It says improved conditions - and modest signs of growth - will encourage the RBA to leave the cash rate alone until next year.

The assertions were made yesterday in its monthly business confidence survey.

"While activity is expected to moderate in coming months, reflecting the Government's fiscal consolidation and a slowing in consumption growth, a near-term rate cut now appears unlikely," it said.

"We [then] see rates lifting a touch in the face of rising mining investment, a strengthening labour market and higher inflation.'' 

It marks a U-turn from NAB, which last month predicted the RBA would cut rates in 2012.


  • by Country Broker 16/08/2012 9:59:03 AM

    Economists employed by banks are about 30- 40% accurate with their predictions !! even worse sine allan Oster left the ANZ !!

  • by Lawry 16/08/2012 10:31:46 AM

    That pack of clowns called the RBA didnt see the GFC coming so what qualifies them to make any decisions concerns our economy I dont know....

  • by Julia Swanee 16/08/2012 10:50:27 AM

    What a load of hog-wash, and an economist/s being paid buckets of $$$$ for delivering this. 'rising mining investment' - with China slowing? 'Strengthening labout market' - with businesses laying off staff on mass? 'Higher inflation' - in a deflation environment? No mention of Europe's continueing slide and the massive debt problems both in Europe and the US where bailouts are ongoing and when the bailouts can't continue Default awaits. Is NAB spruiking fixed rates in disguise?