Interest rates remained on hold at 2% when the Reserve Bank board met this week. But a RateCity analysis of key economic indicators reveals an increasing likelihood that rates will be reduced by the end of the year.

Thirteen of the 18 key economic indicators analysed by RateCity this month pointed towards rates remaining on hold in July, while five suggested a further rate decrease. Peter Arnold, financial analyst at RateCity, said a rate cut of 0.25 was likely to occur towards the end of the year or early next year.