The Reserve Bank of Australia [RBA] is tipped to hold off on an interest rate rise this week but a spike could be on the cards towards the end of the year.
RBA board members will meet on today to decide whether to hold or move the cash rate following its decision last month to keep the rate steady at 3%.
Economists predict rates will not change but have warned of a rise in the 2013 final quarter.
The National Australia Bank forecasts the RBA to hold rates steady as domestic data does not doubt the RBA's confidence it has done enough to keep the economy growing.
According to NAB, evidence of this is shown in the gain of 71,500 jobs in February.
Beyond April, NAB believes there is room to cut a further 50 basis points to prevent looming lost production and income, given a very good inflation outlook.
