Fed: Interest rates expected to stay steady - for now

AAP General News (Australia)
04-04-2006
Fed: Interest rates expected to stay steady - for now

The Reserve Bank board meets today to set interest rates .. with the likely outcome
to be the same as it has been for the past 13 months .. no change.

But economists are divided whether a rate rise is on the way .. or some way off.



Commonwealth Bank equities economist ANDREW MITCHELL says the economy is gathering
momentum .. but inflation is largely under control.

Prices were higher last month .. with the TD Securities-Melbourne Institute monthly
inflation gauge showing a rise of 0.3 per cent.

But TD Securities chief strategist STEPHEN KOUKOULAS says the Reserve Bank will be
on the alert for greater risks.

AAP RTV wjf/psm/

KEYWORD: ECONOMY (CANBERRA)

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