RBA May Cut Rates Soon

Interest Rates hang on knife-edge and still have expectations to begin to shape the housing market. The RBA has for the 10 consecutive meeting kept the cash rate steady at 4.75%. One of the factors why RBA decided to maintain the Cash rates is that European and US recession concerns and the slowing Chinese growth. Despite of the decrease of Australian dollars, housing market decrease, and the increase of the employment rate, many economists still believe and still predicting that in the future Interest Rate may cut. According to a survey of economists, RBA might cut rates as November by 25 basis points. Even there are strong predictions that Interest Rate cuts off this November, RBA is still faced with global uncertainty that makes Australia Economy weakened and Australia has one of the highest Interest Rates among the developed nations at 4.75%.

A survey by the Australian and New Zealand Banking Group (ANZ) revealed that the total number of jobs as in newspapers and online dipped by 2.1% in September compared to preceding month. According to Craig James, Commsec’s Chief Economist told the publication: “The odds of a rate cut in November continue to improve another fall in job advertisement.