Cash rate 'should remain at 4.75 per cent'

The latest TD Securities-Melbourne Institute inflation gauge rose by 0.1 per cent, which one expert has claimed means the cash rate should be kept at its current level.

There was a 4.8 per cent decline in the cost of fruit and vegetables this month, while those who are renting property also saw their outgoings in this area decline.

According to the gauge, the cost of renting a home dropped by 1.1 per cent, which was 0.6 percentage points higher than the dip seen in the preceding month.

Annette Beacher, TD Securities' head of Asia-Pacific Research, asserted that the latest figures suggest that the cash rate should remain at its current 4.75 per cent level.

The board of the Reserve Bank of Australia (RBA) is set to meet tomorrow (November 1st) to make a decision about whether or not to alter the base rate.

If it opts to make a change, it will be the first announced since this time last year, when the RBA raised it by 25 basis points.

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