> RBA rate decision: I’ll go out on a limb and say they won’t raise rates

RBA rate decision: I’ll go out on a limb and say they won’t raise rates

Thursday, 30/09/2010 | 00:13 GMT

The market is pricing in a high liklihood of a 25bps rate rise next week but I personally would be wary.

In the recent past, if the RBA is concentrating on domestic issues then they pull the trigger but if international issues are to the fore, then they may stay on hold. The on-going US/China/Japan issues plus the on-going issues in Europe may be enough to return the RBA’s focus to the international rather than the domestic stage and if that is the case, then they will not raise and may even become less hawkish in the subsequent statement.