Rates are likely to go up by 25 basis points to potentially peg the interest rate to 3.75 per cent.
Should it push through, this will be the first time that the RBA will increase rates for three straight months. However, ANZ chief economist Warren Hogan claimed that this condition is favourable despite the situation in Dubai.
He also added that though there is volatility in the financial markets, the local economy is stable and that the economic data for November registers positive marks.
Hogan also stated that the exposure of Australia’s local market to Dubai is minimal and the losses that are being incurred should not be a concern and that it won’t spark a second global financial meltdown.
After this meeting, the RBA board will meet next on February wherein another interest rate hike is expected.