SA: No interest rate change expected, says BankSA

AAP General News (Australia)
08-03-2004
SA: No interest rate change expected, says BankSA

ADELAIDE, Aug 3 AAP - The Reserve Bank was not expected to move interest rates when
it meets this week, BankSA said today.

BankSA metropolitan banking general manager Chris Ward said while New Zealand on Thursday
lifted its interest rates for the fourth time this year, to six per cent, the move was
not expected to have a significant impact in Australia.

"Recent figures show that inflation continues to run within the Reserve Bank's target
band," Mr Ward said.

"Higher oil prices pose some threat to inflation but also act as a defacto tightening,
taking consumer spending away from retailing and other areas of consumer expenditure.

"Building approval figures for June were stronger than expected, however it is doubtful
this strength would be sufficient to force a quick tightening from the Reserve Bank."

AAP la/sco

KEYWORD: RATES SA

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