In a surprise to many market commentators, the Reserve Bank of Australia once again decided to leave interest rates unchanged at their July meeting.
There had been speculation that a rise was possible due the the strong Australain economy and the possible desire to keep on a steady keel, but common sense prevailed and rates will not be increased.
This should be a constant position in the lead up to the Federal Election later this year, as any rise may prove damaging to the re election prospects of the Howard Government.
The continuing strong Australian exchange rate would also be a major factor keeping rates down as the exporters would not welcome a further strengthening of the Australian dollar that could potentially occur if rates were to rise.
All in all an interesting few months ahead, but we are predicting things to remain steady at least through to the Election.
There had been speculation that a rise was possible due the the strong Australain economy and the possible desire to keep on a steady keel, but common sense prevailed and rates will not be increased.
This should be a constant position in the lead up to the Federal Election later this year, as any rise may prove damaging to the re election prospects of the Howard Government.
The continuing strong Australian exchange rate would also be a major factor keeping rates down as the exporters would not welcome a further strengthening of the Australian dollar that could potentially occur if rates were to rise.
All in all an interesting few months ahead, but we are predicting things to remain steady at least through to the Election.
