NAB expects no RBA rise until mid 2012

Following the Reserve Bank of Australia’s parliamentary testimony last week, National Australia Bank has adjusted its expectations for the timing of future movements in the official interest rate.

According to a statement by the bank’s chief economist Alan Oster, NAB now expects a considerable period of inaction by the RBA.

“We have removed our previous forecast of a 25 point hike in December 2011,” Mr Oster said.

“We still however continue to expect the direction of the next move in the cash rate to be up – albeit not till mid 2012.”

(Ref: The Adviser)