Melbourne Cup rate rise on the cards
The Reserve Bank is likely to lift interest rates by 25 basis points tomorrow, economists predict.
A Melbourne Cup rate rise is almost a certainty as the Reserve Bank continues on its path to a neutral monetary policy setting to five to six percent.
Most economists believe a 0.25 percent rise is on the cards, while some believe it we could be in for a 0.50 percent rate rise as the bank tries to reign in the still present threat of high inflation.
According to Bill Evans, head of global economics at Westpac, the central bank may be keen to get rates up to a more normal level.
“Rates are very low and it wants to get up to a more normal level as quickly as possible. It’s better to announce a big hike now than wait until rates are higher and then jack rates up,” he said.
Reserve Bank governor Glenn Stevens has long been reminding people that interest rates cannot stay at their current “emergency settings” as the threat has passed.
The board is expected to deliver their decision on Tuesday 3 November at 2:30 pm.
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The Reserve Bank is likely to lift interest rates by 25 basis points tomorrow, economists predict.
A Melbourne Cup rate rise is almost a certainty as the Reserve Bank continues on its path to a neutral monetary policy setting to five to six percent.
Most economists believe a 0.25 percent rise is on the cards, while some believe it we could be in for a 0.50 percent rate rise as the bank tries to reign in the still present threat of high inflation.
According to Bill Evans, head of global economics at Westpac, the central bank may be keen to get rates up to a more normal level.
“Rates are very low and it wants to get up to a more normal level as quickly as possible. It’s better to announce a big hike now than wait until rates are higher and then jack rates up,” he said.
Reserve Bank governor Glenn Stevens has said in the past that interest rates cannot stay at their current “emergency settings” as the threat has now passed.
The board is expected to deliver its decision on Tuesday 3 November at 2:30pm.
People who read this, also liked:
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