RBA ‘will hold cash rate long term’ to help govt stimulate economy

Deloitte's Nicki Hutley says the Reserve Bank of Australia will likely keep interest rates low in the long term to ensure the federal government can borrow from the RBA at low rates for 30 years. "We know the Reserve Bank wants more fiscal policy direction for the government to be leading the recovery with that fiscal policy stimulus," Ms Hutley said. "Rates aren't going down but they're certainly not going up either for a very long time. "Low rates are good if you want to be borrowing and for those of us with large amounts of debt." The Reserve Bank is expected to keep interest rates at the record low of 0.25 per cent with hopes the worst of the recession is over. Image: Getty

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