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The Guardian - AU

National

Peter Hannam Economics correspondent

To hike or to hold? The case for each as RBA weighs interest rate decision

RBA Inflation Michele Bullock Warren Hogan Interest Rates

RBA governor Michele Bullock — RBA governor Michele Bullock likes to say ‘nothing can be ruled in or out’, but the chance of an interest rate rise on Tuesday seems small. Photograph: Bianca de Marchi/AAP

The Reserve Bank of Australia will probably only weigh up two cases – to hike or to hold its cash rate – before revealing its verdict at 2.30pm on Tuesday (AEST).

The central bank appears unlikely to lift interest rates after weaker than expected inflation figures came out last week, but it will consider the price rises as well as labour figures and GDP in its decision.

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