Rate tipped to rise by 0.5 per cent

Financial markets have priced in a 67 per cent chance of a half a per cent rate rise on Melbourne Cup Day, the first Tuesday in November. That would be the biggest single rate rise delivered by the Reserve Bank of Australia in more than ten years.

The governor of the Reserve Bank, Glenn Stevens has made his view clear that he fears that house prices could rise too strongly, making life hard for borrowers without delivering benefits to the economy.

Source: The Age