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RBA tipped to leave interest rates on hold

HOMEOWNERS should not expect an interest rate cut this week, with the Reserve Bank tipped to leave the 2.5% cash rate on hold at its Tuesday meeting.

Economists from Westpac, UBS and HSBC are all tipping a "hold" decision by the RBA at its monthly board meeting.

The forecast comes despite rumours of an impending bubble in the housing market in recent weeks.

It also comes as the United States faces a possible end to its government credit line, which could hit the Australian dollar.

But the RBA board was unlikely to make any changes to rates before any decision actually affected the dollar.


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