RBA surprises with no November rate cut

The Reserve Bank kept the official cash rate at 3.25 per cent yesterday. The decision to hold fire caught economists by surprise, with 20 out of 27 polled by Bloomberg having tipped a 25-basis point trim.

Economists are now predicting the current downward rate cycle – which has seen the RBA slice 1.5 per cent from the cash rate in the past year – is nearing its end.

HSBC chief economist Paul Bloxham said he still expected a 25-basis point cut in December but it was by no means a certainty. “It's going to be a pretty close call,” he said.

Source: Herald Sun