Next Interest Rate Move

The next interest rate move should be down according to RBA Governor Glenn Stevens. He said conditions outside the mining industry have been slowly improving, not deteriorating.

“So it is not as though the increases in mortgage rates are compounding the effects of a serious deterioration in economic conditions overall,” he said.

“We are still growing. It would be good if the growth was a bit stronger, but nonetheless over the past year the non-mining side of the economy has generated respectable growth in employment,” Mr Stevens said.

Interest rates would need to remain low and might yet be cut again.

The official cash rate is currently 2%