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Interest rates to remain on hold…for now

Interest rates are expected to remain on hold for the foreseeable future.

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According to NAB’s latest monthly business survey, interest rates are likely to remain at 4.5 per cent until late 2010.

But while rates remain on hold for now, NAB’s chief economist Alan Oster says the RBA will inevitably raise rates again before the end of the cycle.

“Interest rates will peak at 5.5 per cent by mid 2011 and inflation will be revised up to 3 per cent before year’s end,” Mr Oster said.

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