One in three Aussies predict interest rates to fall again

By Mozo ·

More than one in three Aussies believe the Reserve Bank of Australia (RBA) will cut interest rates again this month.

This is according to a new survey conducted by the Loan Market Group, which showed 39 per cent of respondents feel the RBA could introduce a reduction as soon as next week.

A further 27 per cent stated the institution would hold off until the new year before slashing interest rates. The RBA only made its latest adjustment to rates at the start of November, when it sanctioned a reduction of 0.25 percentage points.

One crucial factor could be that the RBA board will meet on December 6th and will not get together again until February, which may mean action is taken sooner rather than later.

"There is no doubt they will need to cut further to continue to shore up confidence in the current global environment," commented chief operating officer at Loan Market Dean Rushton.

Chief economist at AMP Capital Shane Oliver recently told the Sunday Telegraph there is a 60 per cent chance the RBA will reduce interest rates in the next month or so.

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