 RBA rate decision
Official interest rates were kept on hold today as the Reserve Bank of Australia met for their monthly policy meeting. Rates remain at a record low of 3 per cent.
While home loans and housing industries are strong, other economic areas have fallen short, taking the excitement down a notch.
While economists still believe the rate will rise sooner rather than later, predictions of a pre-Christmas hike are falling.
Home loan interest rates have risen slightly on some fixed rate loans and many banks have hinted at preparing for further rises to variable rates despite the RBA leaving official rates on hold.
The chief economist with AMP Capital Investors, Shane Oliver, says it's hard to say if improvements to the economy are simply a result of stimulus packages.
"Our view is the most likely timing of a rate hike remains early 2010," he said.
"My feeling is that the Reserve Bank is better off waiting and seeing and making sure that the economy and the recovery is self-sustaining.
"Yes there are some signs of improvement in the economy but it's not all straight ahead," he concluded.
There is plenty of evidence to suggest the worst is over for the economy, ranging from a surge in business investment, revealed last week, to a 1.1 per cent rise in average house prices for July.
Macquarie Bank interest rate strategist Rory Robertson says the positive economic data may swing the RBA into moving rates upwards soon.
"I still expect any first hike on October 6 to be 25 basis points," Mr Robertson said.
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