Australia PM: Meeting With Reserve Bank Of Australia Governor Later Friday

2nd Jul 2010 01:01

MELBOURNE (Dow Jones)--Australia's Prime Minister Julia Gillard said Friday she will travel to Sydney later in the day, where she will meet with Reserve Bank of Australia Governor Glenn Stevens. Asked what she thought about speculation that interest rates could drop, Gillard said: "I don't speculate on interest rate movements, that'd be inappropriate. "I will travel to Sydney later today where I will meet with the Reserve Bank Governor, so I will be able to get his perspective face to face," she said. The central bank is expected leave Australia's official cash rate, which sits at 4.5%, unchanged next week having hiked rates six times in since October 2009. Amid recent evidence that the U.S. economic recovery is failing to garner any traction, local markets have begun to bet on the idea rates could be cut by year end. The August 30-day interbank futures contract now has an 8% chance of a rate cut priced in. Earlier this week, some were betting as a much as a 30% chance rates would be cut. -By Lyndal McFarland, Dow Jones Newswires; 61-3-9292-2093; [email protected] (END) Dow Jones Newswires July 01, 2010 20:01 ET (00:01 GMT)