Odds of RBA interest rate cut 'improved'

With figures showing a decline in the number of jobs available in Australia, the likelihood that there will be a reduction in interest rates has increased, it has been claimed.

A survey by the Australia and New Zealand Banking Group revealed that the total number of job ads in newspapers and online dipped by 2.1 per cent in September compared to the preceding month, reports the Australian.

Craig James, Commsec's chief economist told the publication: "The odds of a rate cut in November continue to improve following another fall in job advertisements."

He added that the rapid loss of momentum in the economy is likely to prove a matter of concern for the Reserve Bank of Australia (RBA).

Interest rates have been at 4.75 per cent since they were set at this level in November 2010, but in recent weeks a number of experts and groups have been calling for a rate cut.

Among these are Westpac and the Australia Chamber of Commerce and Industry.

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