KEY POINTS:
The word on the street is that New Zealand could be in for an interest rate rise this week, but it's a different story across the Tasman.
Economists there say Australia's Reserve Bank (RBA) is unlikely to raise interest rates when it meets this morning.
Their central bank increased interest rates three times last year in a bid to rein in inflation.
The official cash rate in Australia currently stands at 6.25 per cent.
The RBA has already met once this year and decided to keep interest rates on hold.
TD Securities chief strategist Stephen Koukoulas says while inflation is still higher than the Reserve Bank would like, it is unlikely to raise rates.
"The RBA is waiting to see if the rate hikes of 2006 cool the economy down," Mr Koukoulas said.
"It's too early to be sure that that's the case but they can afford to wait another month."
He says the conflicting news of too high inflation and low economic activity almost guarantees a decision to hold Australian rates.
The RBA will announce its decision tomorrow morning.
RADIO AUSTRALIA, NZHERALD STAFF
