No upward move for rates

Date: 5/07/2010

Interest rates are expected to remain on hold after tomorrow's RBA board meeting.

Concerns over the global economy and financial market volatility are expected to outweigh continued domestic inflation pressure in shaping tomorrow's decision.

Credit Suisse estimates even argue the market is pricing in a 10% chance of an interest rate cut by the RBA, and almost no chance of a rate rise over the coming year.

The RBA steadily lifted interest rates six times between October and May this year, to the current level of 4.5%, but elected to keep them on hold last month.