Reserve Bank tipped to hold interest rates
The Reserve Bank of Australia (RBA) is unlikely to deliver more mortgage relief to homeowners at next months' meeting, experts have forecast.
According to a poll by Bloomberg, 13 out of the 25 economists surveyed expect that the official cash rate will be kept on hold at 3.25 per cent, while the other 12 experts believe the bank will slash the rate to three per cent when it meets again on December 4.
Further into the future, the economists predict the RBA will cut interest rates once in 2013, providing it keeps them steady for the rest of this year.
Six of the financial experts have tipped the cash rate will be slashed to 2.75 per cent during the first quarter of next year, a move that is likely to be welcomed by residential property owners across the country.
CommSec chief economist Craig James told SmartCompany the RBA's stance on monetary policy is likely to become clearer after the governor's speech to the Committee for Economic Development of Australia today (November 20).
"The speech by the Reserve Bank governor should provide more interest. At this time there is no topic set for the speech, but if the governor wants to send a message - perhaps on the Aussie dollar, wage growth or views on the global economy - this will be the opportunity," Mr James explained.