Kieran Salsone

RBA tipped to hold rates

ECONOMISTS are tipping the Reserve Bank to leave interest rates unchanged when it meets today.

All of the 28 economists surveyed by Bloomberg expect the RBA will hold the cash rate at 3.5 per cent for July.

Economists say recent strong employment figures and better-than-expected economic growth in the first quarter mean the RBA can sit tight this month.

Citi senior economist Joshua Williamson says recent developments in Europe add to the case for the RBA to leave the rate unchanged.

"There's probably a little bit more hope that we'll actually see a resolution to the sovereign debt crisis; that will avoid a break-up of the single currency area in Europe," he said.

Read more at ABC news online.


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