RBA suggests interest rate cut is on the cards
The Reserve Bank of Australia (RBA) has revealed that is has not ruled out the possibility of a reduction in the cash rate at the next meeting of the board.
Speaking at an investment conference in Sydney, deputy governor of the central bank Ric Battellino said the financial institution would carefully consider the latest consumer price index when it is released by the Australian Bureau of Statistics tomorrow (October 26th).
"The downward revisions to recent estimates of underlying inflation and the softer global economic outlook have made the outlook for inflation less concerning, providing scope for monetary policy to be supportive of economic activity," he stated.
However, the official added that the future of the Australian economy is still uncertain and it is yet to be seen how it will react to the "volatility" in the world's financial markets.
The cash rate is currently at 4.75 per cent – the level set in November 2010 – but the RBA is set to meet on November 1st to make a decision on whether a cut is required.
Get more information on the latest Reserve Bank interest rates with Mozo.