Next interest rate change 'will rest on inflation data'
ANZ head of Australian economics Katie Dean observed that recent comments by deputy governor of the central bank Ric Battellino suggest that any change in monetary policy is likely to be "modest", reports the Herald Sun.
She asserted that the decision on Tuesday November 1st will rest "squarely on inflation data" and that the easing in financial conditions is "quickly reversing with the Australian dollar continuing to rebound, swap rates off their lows and elevated wholesale funding costs in global debt markets".
Betting on futures markets suggests that there is a 71 per cent chance that the RBA will reduce the cash rate from its current 4.75 per cent level.
It suggested that there is likely to be a further rate cut of 50 basis points by February 2012.
The last time the cash rate was changed by the RBA was in November last year.
Get more information on the latest Reserve Bank interest rates with Mozo.