Will Interest Rates Remain Unchanged?

Let me ask you, what is Interest Rate? There are a lot of people defined in so many ways but what is all about? Interest Rate is the rate of which interest paid by a borrower for the use of money that they borrow from a lender. Interest Rates are normally expressed of the principal for a period of one year (source wikipedia).

The Reserve Bank of Australia has official interest rate unchanged at 4.75% at its meeting last September 06, 2011. In such unchanged rates, many speculations raised like the  impact of unemployment rates, the economic growth, inflation outlook and consumer confidence. Each of these speculations is affected by other factor and the board (RBA) will continue to survey carefully the outlook for growth and inflation. There is some speculation whether the Interest Rate will remain unchanged. Australia’s dollar fell 0.3% to $1.0915 and there is a chance of the Reserve Bank of Australia will raise its benchmark rate to 5% by October, according to trading bank in inter bank futures.

“We expect that in November they will be confident enough to start raising rates without choking off confidence and demand prematurely”, said Spiros Papadopoulos, an Economist at National Australia Bank Ltd. In Melbourne.