One per cent rate cut expected next week

The Sydney Futures Exchange 30 interbank cash rate futures for December 2008 is indicating a 100 per cent expectation that the Reserve Bank of Australia will reduce interest rates by a further one per cent at its meeting on Tuesday the third of December. A one per cent cut would take the official cash rate to 4.25 per cent. The market has a zero per cent expectation that there will be no change to interest rates.

Source: Australian Securities Exchange