The Reserve Bank of Australia (RBA) will meet on Tuesday 2 December and, the Marquette Turner team expect, they will make a fourth consecutive cut to the official interest rate.

A survey of 18 economists by the Australian Associated Press revealed the following:

  • All 18 economists believe the RBA will cut interest rates
  • 11 economists expect the rate to drop by 0.75% (75 basis points) putting interests rates at 4.5% (the lowest since June 2002)
  • 5 economists believe the cut will be 1% (100 basis points) leaving interest rates at 4.25%, the lowest level ever.

Time will tell who wins the bet, but home owners and buyers alike will be the winners of any rate cut.

Simon Turner

FYI: Read related articles on Interest Rates; the Credit Crunch; and the Economy

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