’50 per cent chance’ RBA will increase rates on Tuesday, economist predicts

Microbusiness Chief Economist Leith Van Onselen estimates there is a “50 per cent chance” the Reserve Bank will raise interest rates next week.

“There is probably a 50 per cent chance, I know I’m hedging my bets there that the Reserve Bank is going to increase interest rates next week.” Mr Van Onselen told Sky News Australia host Erin Molan.

The comments come as both ANZ and ING banks hiked interest rates on Friday.

“Since the last time I spoke to you, there has been a few changes in the rhetoric, the Reserve Bank minutes came out and they raised concerns that rents are rising quicker than they expected, we also have rebounding property prices.”

The International Monetary Fund says the RBA must increase rates next week otherwise inflation will not decrease at the required rate for the two to three per cent target until 2026.

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