Economists predict the cash rate will stay on hold when the board of the Reserve Bank of Australia meets today.
But many forecasters say there could be a string of rate hikes next year, with the cash rate expected to rise to 3.25 per cent.
That’s mostly due to indications from RBA governor Glenn Stevens, who increased expectations that the interest rate cutting cycle is over by delivering an upbeat view of the economy during a speech in Hong Kong last week.
Westpac chief economist Bill Evans says the economy is getting stronger and the currently weak labour market is expected to strengthen next year.
And HSBC Australia chief economist Paul Bloxham says the labour market is improving and expects the cash rate to start rising before the end of the year.
AAP RTV