Reserve bank to cut rates?

By Mozo ·

Aussies could be in for a boost if the Reserve Bank of Australia (RBA) goes ahead with plans to cut the base interest rate next week, as analysts have predicted it will.

An AAP survey of 15 economists found most expect the RBA to cut rates by 0.25 per cent at its Tuesday meeting, although it is difficult to predict what the central bank will do with any degree of certainty.

The bank kept the rate steady at 3.25 per cent in November following three consecutive cuts.

JP Morgan economist Tom Kennedy told the Australian that slowing growth seems likely to point to a further reduction.

"Everything we've got, including retail sales, construction work done, and government spending, has all pointed to a weak third quarter GDP," he forecast.

Homeowners will no doubt be hoping for the Christmas present of a dip in rates, with households in New South Wales recently learning that utility prices are set for a further increase in the new year, placing further pressure on their savings accounts.

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