More Fuel For Rate Cut

Comments made by the Reserve Bank Governor Mr Ian Macfarlane at a banking conference in Sydney are being reported by industry analysts as further evidence of an impending rate cut.

Mr Macfarlane was reported in the Financial Review as saying that bank supervisors “will have to be extremely careful not to inadvertently encourage banks to become even more risk averse than they currently are”.

Further financial data showing inflation, whilst appearing to have bottomed out, is not in danger of breaking through the Reserve Banks target range and other economic indicators pointing to a slow down in growth through next year are also adding fuel to the rate cut fire.