26 Oct 2010

Interest rates expected to be held by Reserve Bank

6:03 am on 26 October 2010

Economists expect the Reserve Bank to keep interest rates on hold at 3% this week.

All 17 economists polled by Reuters believe rates will not rise on Thursday.

Most are not pencilling in an increase until the first quarter of next year, with March tipped as the most likely time.

Goldman Sachs chief economist Philip Borkin says Thursday's decision and an accompanying statement are unlikely to hold any surprises, as Reserve Bank governer Alan Bollard appears to be pretty comfortable with the status quo.

The Official Cash Rate was raised to 3% from 2.75% on 29 July. It was previously held at 2.5% from 30 April, 2009 - 10 June, 2010.