Leading mortgage broker and non-bank lender Aussie Home Loans has called on the central bank to leave official interests rates on hold at its board meeting next week.

Many financial market economists believe the Reserve Bank of Australia (RBA) is likely to lift the cash rate by 25 basis points to 3.75 per cent on Tuesday, December 1.

But Aussie executive chairman John Symond said credit is in short supply and a further rate hike now may hurt lending and consumer confidence, despite signs that the overall economy is emerging from the global downturn.

“We are heading into the crucial Christmas retail season and a rate hike will hurt sales and create further concerns for households,” he said in a statement on Thursday.

“The economy is recovering but is susceptible to any economic shocks, which continue to be felt overseas.

“The Reserve Bank needs to be very cautious in lifting rates prematurely.”

AAP