Economists: Australian central bank likely to lift rates

CANBERRA, Nov. 27 (Xinhua) -- The Reserve Bank of Australia is likely to make history next Tuesday by lifting interest rates for a third straight month, economists predicted on Friday.

After more data showing Australia has avoided the worst of the downturn, 13 of the 14 economists surveyed by Australian Associated Press expect the central bank to lift the cash rate by 25 basis points to 3.75 percent on December 1, following two moves by 25 basis points in October and early this month.

If it does, it will be the first time the bank has lifted interest rates three months in a row since it started announcing the rises in January 1990.

"The cash rate at 3.5 percent is way too expansionary on an economy that won't experience the worst outcomes of the global financial crisis," Commonwealth Bank senior economist Michael Workman said.

In a sign the Australian economy was doing better than other western nations, Workman said recent jobs data indicated unemployment would peak at 6.5 percent.

This figure is below revised Treasury forecasts for the jobless rate to hit 6.75 percent by late 2010. In May, Treasury was forecasting an unemployment rate peak of 8.5 percent.

Recent Australian Bureau of Statistics data showed total employment rose by 24,500 to 10.832 million in October, seasonally adjusted, after it shot up by 40,600 in September.