FED:Worries banks will go it alone on rates

AAP General News (Australia)
08-03-2010
FED:Worries banks will go it alone on rates

Business has welcomed the Reserve Bank's decision to leave the cash rate unchanged
.. but it's concerned retail banks will independently lift lending rates after the election.

The central bank left the cash rate at 4.5 per cent for a third straight month after
its monthly board meeting today .. a decision widely expected by economists.

GREG EVANS from the Australian Chamber of Commerce and Industry says there are concerns
about non-official interest rate increases by the major lenders after August 21.

He says that could have a major dampening impact on the recovery.

AAP RTV cb/sb/crh

KEYWORD: RATES ACCI (CANBERRA)

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