An end to rate cuts?

The Reserve Bank of Australia is unlikely to cut rates any further because business confidence and economic conditions seem to be improving says Citigroup chief economist Paul Brennan.

Official interest rates are currently set at three per cent.The National Australia Bank's latest business survey for April 2009, which is closely monitored by the Reserve Bank, shows improving levels of business confidence and evidence of forward sales holding up.

NAB chief economist Alan Oster said the improvement in business conditions comes after several months of rising business confidence. "There is very little doubt that the rate of decline has moderated," he said.