KEY POINTS:
Economists across the Tasman say interest rates are likely to remain on hold after today's meeting of the Reserve Bank of Australia (RBA) board.
The RBA increased its cash rate by a 0.25 last month to 6.75 per cent amid concerns about inflation.
Economists in Australia are saying global market instability, prompted by the subprime mortgage crisis in the US is likely to deter the RBA from increasing rates again this year.
But TD Securities senior strategist Joshua Williamson says there could be a February rate rise instead.
"But I think that on balance when you look at the risks, there is a concern that we could be having an inflationary problem in this country because growth is just so strong at the moment and the supply side just can't keep up," he said.
"So I think at the end of the day the Reserve Bank will still need to focus on these domestic considerations and actually remind the market and remind Australians that there's an inflationary problem at the moment."
Yesterday, a private survey showed a continued rise in inflation for November.
The TD Securities-Melbourne Institute monthly inflation gauge increased 0.3 per cent in November, with a rise of 3.4 per cent over the year.
The RBA will announce its decision on Wednesday morning. In New Zealand, our own Reserve Bank is scheduled to make on Official Cash Rate (OCR) announcement on Thursday morning.
