RBA odds-on to to keep rates on hold

The Reserve Bank is widely expected to resist a Melbourne Cup Day interest rate cut despite some more gloomy economic figures.

The official cash rate sits at a record low of 0.75 per cent after the RBA cut rates by 0.25 percentage points in October.

It was the third cut to interest rates in five months, however the banks have failed to pass on those cuts in full.


Inflation figures released last week show the cost of living rising by only 0.5 per cent in the September quarter.

The annual rate sits at 1.7 per cent, still below the Reserve Bank’s target.

Retail trading figures out on Monday show previous rate cuts along with tax cuts have failed to stimulate the economy as hoped.

Spending was only up 0.2 per cent in September well below expectations, proving Australians are keeping their wallets well and truly shut.

Experts are tipping the RBA might deliver an early Christmas present with a December rate cut.