Majority of economists tipping a December RBA cash rate cut, but all say there's one more cut left: Bloomberg

All 26 economists surveyed by Bloomberg expect the RBA to cut the cash rate further by mid-2013, with sentiment shifting somewhat towards a RBA cash rate cut on December 4.

In the latest poll carried out on Friday, 15 out 26 economists are tipping the cash rate to fall to 3% on December 4.

In last week’s poll 12 out of 25 economists tipped the RBA to cut the cash rate.

The major banks have not shifted their positions, with the Commonwealth Bank and NAB tipping the RBA to hold firm at 3.25% and ANZ and Westpac expecting one more rate cut before Christmas.

ANZ was the only one of the major banks to correctly tip the RBA to leave the cash rate on hold on Melbourne Cup Day.

If the RBA does decide to leave the cash rate on hold, the next meeting is in February – the RBA does not meet in January.

Data out this week includes October new home sales figures from HIA and third-quarter construction figures, which may give clues to any recovery in the new residential building sector, and RBA private sector credit data, including data on mortgage lending.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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