Reserve to hold fire on interest rates while the economy ticks over
There's not going to be a near-term cut to interest rates and the chances of a reduction next year are slim as the non-mining parts of the economy are expected to pick up pace, economists say. A survey of 14 economists says the Reserve Bank of Australia will not cut the cash rate at its board meeting on Tuesday. Only eight of those surveyed expect a rate cut next year. The mining and resources investment boom is at, or near, its peak and other parts of the economy are expected to pick up pace and have a more significant role in driving the Australian economy. Citigroup said there was evidence the Australian economy was starting to rebalance, helped by recent rate cuts. Bank HSBC said a lower exchange rate would also help the economy. There was data showing domestic expenditure was slowly improving, it said.
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