RBA unlikely to make further cuts to cash rate
THE Reserve Bank is likely to hold fire on another interest rate cut when it meets tomorrow for the first time in 2013.
A national survey by 1300HomeLoan found 63% of the company's mortgage brokers thought the central bank would leave the cash rate at 3%.
Just over a third thought the RBA would cut by 25 basis points, while 3% were tipping a cut of 50 basis points.
Economist Adam Carr, who was highly critical of the RBA's decision to cut the cash rate late last year, agreed the rate would be left on hold.
"I think they'll keep rates steady. The RBA board have really called the global and domestic economies quite badly and have cut hard," Mr Carr said.
"Iron ore has surged back up, the global economy is looking good as is the domestic economy."
Mr Carr said the natural disasters of the past few weeks would come into the RBA's thinking when it deliberates tomorrow.
"Natural disasters are better left for fiscal policy," he said.