RBA puts rates policy into full reverse

Financial markets are expecting another big cut in official interest rates of 0.75 per cent or even one per cent by the board of the Reserve Bank when it meets in Sydney on December 2. That would bring the official cash rate down to 4.5 per cent or below and standard variable bank mortgage interest rates down to about 7 per cent. RBA board minutes from the November meeting indicate that the bank is looking for a setting that is neither inflationary nor hinders growth. Interest rate forecasters said the RBA may cut rates by one per cent in December because the bank traditionally does not meet in January.

Source: The Australian