Why 2014 will be the year of the rate hike

Interest rates will be left alone by the Reserve Bank board today. But get ready for hikes in 2014 when inflation rises and the labour market turns around.

A hike in interest rates will not be seriously canvassed at today’s meeting of the board of the Reserve Bank of Australia as it almost inevitably decides that no change in the 2.5 per cent cash rate is appropriate for now. 

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