Rates tipped to stay on hold
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AAP
August 07 2012, 00:01AM
SYDNEY, Aug 7 AAP - The Reserve Bank of Australia (RBA) is expected to keep the official interest rate on hold at 3.5 per cent on Tuesday.
All 15 economists surveyed by AAP said the RBA would not move the cash rate at its August board meeting, and only two economists have forecast a rate cut in September.
The last time the central bank cut its cash rate was in June, by a quarter of a percentage point to 3.5 per cent, following a half a percentage point reduction in May.
Those previous cuts are already supporting the interest rate sensitive sectors of the Australian economy, including housing, HSBC chief economist Paul Bloxham said.
"Given that growth momentum in the local economy is solid, we think the RBA is unlikely to cut rates again," Mr Bloxham said.
"Despite reports to the contrary, there is still significant support for growth to come from mining, both in the form of further investment and rising exports."
Fourteen of the 15 economists surveyed say there will be a rate cut some time in the last three months of 2012.
