Interest rates likely to go up soon, says Moody's

Australia is the first G20 country to raise interest rates yesterday, with the country’s apex bank declaring recession over. The Reserve Bank of Australia (RBA) raised the official cash rate by 25 basis points to 3.25 per cent.

“The Reserve Bank of Australia’s interest rate increase this week likely kicks off rate hikes across the region in coming months.

Speculation regarding imminent interest rate movements in the Asia-Pacific region has been growing,” Moody’s economy.com, said in a report.  Moody’s arm said apex banks are keeping “a close watch on rising economic activity and emerging inflation pressures.”