The retail sales in Australia rose up in the August making it the six straight months of rise while the job ads hit a 20 months high in the same month. This is a good news for the economy of the country which would allow the country to rise the interest rates later.

There is s speculation after the rise that the Reserve Bank of Australia (RBA) will raise its cash rate by 25 basis points to 4.75% in a pre-emptive strike against the inflation. The central bank is going to declare the result of its policy meeting at 0330 GMT. The RBA is opting to raise the interest rate as there is a need o do so to move into the restrictive territory genuinely. The previous trade condition and investments have created big challenges for the bankers in terms of inflation.

The RBA has to do something with the interest rates as the economy of the country has risen in last few months after facing huge drops earlier in this year because of the global economic crisis.

The 0.3% rise in the interest rates is lower than expected before because of the drop in the spending and clothing sector.