Shane Oliver Rates Quotations

U.S. interest rates are pretty close to the top. By year- end it is quite likely the Fed will be shifting toward easing monetary policy and investors will be starting to wonder about a renewed widening in the Australian and U.S. interest-rate gap.

Rising fuel prices will keep a lid on consumer spending for some time, slowing economic growth. The central bank will keep interest rates on hold.

Recent economic data has been on the soft side. There is nothing in the recent run of generally soft numbers that would support another rise in rates by the Reserve Bank.

Slowing housing, weak consumer spending and benign underlying inflation give the bank plenty of reasons to leave interest rates right where they are. Fuel prices are up, but thanks to an extremely competitive retail environment and cheap imports, prices for a whole range of items remain weak.

Interest rates globally are putting some pressure on financial stocks. It's quite possible we go through a bit of a correction in share markets around the world.

Cheap products from China and a very competitive pricing environment is helping keep underlying inflation in check. Interest rates are on hold for the time being.

The housing market remains in the doldrums. With the housing market still slowing and households under pressure from high petrol prices, interest rates will remain on hold.