Leave rates where they are says IMF

Mon, 29 Sep 08

There will be no housing price collapse in Australia and inflation remains the biggest single hurdle to continued economic growth says the International Monetary Fund. The IMF has warned the Reserve Bank of Australia against cutting interest rates too fast and is believed to have told the RBA that it had underestimated the possibility of the commodity price boom fuelling inflation for consumers. The IMF said that interest rates were at a level that would gradually reduce inflation and they should be cautious about reducing them further. Interest rates should remain steady for the next year advised the IMF.