Interest Rate Cut On Cup Day a Possibility

When the RBA meets on Tuesday Melbourne Cup day, there is a slight chance of a rate cut as inflation pressures have eased.

Official data released by the Australian Bureau of Statistics last week revealed lower inflation figures than expected for the September quarter, adding to speculation of an interest rate cut.

The data also showed that the trimmed mean CPI rose 0.3 per cent in the September quarter, for an annual growth rate of 2.3 per cent. The weighted median CPI rose 0.3 per cent in the September quarter, for an annual rise of 2.6 per cent.

These figures revealed are what most economists had predicted.

Some economists are however predicting that interest rates will probably drop in November and December. Further interest rate cuts after the end of 2011 will depend on what happens in Europe over the next few days.

Get your quotes now

What to find out more? Enquire now

Published on October 10-st, 2011 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

More on this topic

Enquire about Home Loans
Please enter the estimated value of the property

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.