NAB is forecasting the Reserve Bank will keep interest rates steady throughout 2012. NAB is so optimistic about the Australian economic outlook it is tipping the next move on rates will be up but not until mid-next year.
“Conditions improved across most industries – with particularly strong kick-ups in retail and wholesaling,” the latest NAB survey report said.
“Against that mining conditions fell heavily – in line with the softening in commodity prices and especially iron ore prices. But investment and exports outlook still solid. Overall outlook remains robust enough to avoid need for further rate cut.”
Source: Herald Sun