The central bank of Australia, RBA (Reserve Bank of Australia) has a scheduled meeting in the next week. On coming Tuesday when the RBA officials meet, they definitely will have the fact on mind that house prices are raising and the credit demand is improving. They will definitely consider raising the official cash rate.

The data released on Friday indicated that the house prices have a record increase. They were at their 5 year peak in January. The consumers have also finally regained confidence in taking credit after the slowdown.

Last year also there was a raise in the interest rates which did not stop the consumers from taking credit, the data revealed. There have been good signs on the investment as well as labor force front and thus people will be looking to take credit in order to fulfill their shelter needs.

The cash rate is just expected to rise by 25 basis points to 4% in the next week meeting. Most analysts have already predicted that there is minimal chance of the ratio staying at 3.75%.