Economists bet on Cup day rates cut

On Tuesday 1 November 2011, 7:49 EST

The majority of economists surveyed by Bloomberg expect the Reserve Bank to cut official interest rates when it meets ahead of the Melbourne Cup today.
A total of 15 out of 26 economists surveyed think the Reserve Bank will cut official rates by 25 basis points to 4.5 per cent.
BT Financial chief economist Chris Caton thinks the September quarter inflation data, released last week, was the deciding factor.
"My suspicion is they will cut rates," he said.
"The inflation figures last week certainly gave them carte blanche to do that, should they think it's necessary.
It's a close run thing but I think they'll do it." The official announcement will come shortly before the Melbourne Cup.
The Federal Government is demanding the banks pass on any possible rate cut in full.
Assistant Treasurer Bill Shorten has told AM that if the Reserve Bank does cut rates banks must relieve the financial pressures on families.
"Banks are doing well, and good luck to them.
No problem with banks doing well.
[But] banks should pass on in full the Reserve Bank decisions if they lower the cash rate," he said.
"No question, pass it on in full."

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Jason 1 hour ago Report Abuse
even if THEIR measure of inflation is low(which they recently changed in corruption with Aust Beurea Stats) it will definately sky rocket when the dust settles.

do you want some minor pain now people, or do you want major pain later. THINK GREECE

over spending when they didnt have the money. that is what RBA needs to prevent.

im sick of all this media pressure to cut. their only interest is more spending because they get more ad revenue.

RBA needs to maintain a firm stance
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Monday, 31 October 2011