Aussie Home Loans has called on the Reserve Bank to show restraint next Tuesday, Aug. 2, when the RBA board meets again to decide on the course of interest rates.

Founder and Executive Chairman of Aussie Home Loans, John Symond, thinks the central bank should not lift rates as a rise could tip Australia into recession.

According to him,“There are many reasons why the Reserve Bank should not lift rates, perhaps the most important being the fact that the non-mining economy is slowing, with retail sales and consumer confidence down.

“We are currently seeing a two speed economy and many non-mining industry sectors are suffering.

As a result, one or two more rate rises could well tip Australia into recession,” he added.

Mr Symond said the current debt crisis in Europe and softening economic conditions were also concerning Australians, who in response had lifted their savings rate.

“Many Australians are worried about their job security and are not spending money, while the spectre of new taxes is also hanging over them,” he added.