UBS Says RBA Rate Rise in ’14 Too Early as Mining Boom Fades

The Reserve Bank of Australia probably will hold its benchmark rate at a record low this year to smooth the economy’s transition from mining-led growth, UBS Global Asset Management says.

Planned cuts to government spending at a time when capital investment in resources is fading will delay policy tightening for now, said Anne Anderson, who helps oversee almost $30 billion as the Sydney-based head of Asia-Pacific fixed income at UBS AG’s money-management business. She is favoring the bonds of state governments on prospects regional authorities will trim borrowings.