Australian interest rate rise "obvious"-treasurer

SYDNEY, Aug 2 - Australian Treasurer Wayne Swan said on Sunday it was "obvious" that interest rates would rise from current historic lows, but he refused to speculate on the likely timing.

The central Reserve Bank of Australia's official cash rate stands at 3.0 percent. Most analysts are predicting rises in 2010, which is likely to be an election year.

"It is obvious that some time into the future rates will certainly rise," Swan told Channel Nine television.

"But for the time being the Reserve Bank has said that we still have a difficult outlook and it takes that into account when it's setting the future of rates."

Last week Reserve Bank governor Glenn Stevens said there was no rule that said the central bank had to wait for unemployment to peak before raising interest rates, fuelling talk of a coming rate rise.

The central bank is almost certain to keep rates steady for a fourth month at its policy meeting this week but might take a step toward eventual hikes by dropping any reference to room for easing, analysts said.

The central bank will announce its decision on Aug. 4 at 2:30 p.m. (0430 GMT) along with a brief statement.

After upbeat comments on the economy from Stevens last week, speculation is rife he will drop the line that: "the outlook for inflation allows some scope for further easing of monetary policy, if needed."

Prime Minister Kevin Rudd's three-year term ends in late 2010.