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NAB Revises Rate & House Price Forecast
Tuesday, October 13, 2009
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Following on from the Reserve Bank of Australia’s decision to raise the official cash rate by 25 basis points to 3.25 per cent last week, the National Australia Bank has now revised its rate rise predictions.
According to NAB’s latest monthly business survey and economic outlook, released today, the RBA will raise rates 50 basis points before the year’s end, taking the official cash rate to 3.75 per cent.
But despite changing their rate outlook for 2009, NAB has kept its longer term rate path prediction unchanged at 4.25 per cent by the end of 2010 and 5.50 per cent by 2011 end.
NAB’s chief economist Alan Oster said the RBA’s decision to raise rates was thanks to a better than expected unemployment rate and a surge in business confidence.
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- NAB