RBA 'more likely' to make November rate hike

Tuesday 12 October 2010

Article by Mozo

The Reserve Bank of Australia (RBA) is more likely to make an interest rate hike in November than in certain other months, it has been claimed.

An editorial by the AAP notes that RBA rate moves are about twice as likely in February, May, August and November than in the other seven months of the year.

"The reason for this is that those are the meetings falling immediately after the release of key inflation figures late in previous months," it commented. "The RBA frames its monetary policy decisions within the inflation target it imposed on itself in 1993."

Such speculation came as the AAP observed that November 2nd could be the fifth consecutive occasion that the Melbourne Cup has been accompanied by an official interest rate hike.

The Cup is run on the first Tuesday of November while the RBA schedules all of its monthly monetary policy meetings for the first Tuesday of every month, except January.

Earlier this week, Anthony Keane of the Herald Sun noted that the RBA's surprise decision to keep the official cash rate on hold at 4.5 per cent last week could be treated as a chance to bolster household budgets before "big rate rises next year".

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