RBA to deliver a pre-Christmas rate cut.
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SYDNEY, Dec 4 AAP
December 04 2012, 02:00AM
Concerns about slowing domestic growth should see the Reserve Bank of Australia (RBA) deliver an interest rate cut in time for Christmas.
The RBA board meets on Tuesday for its last monthly rate decision until February 2013, and an AAP survey of 15 economists show that most expect a cut of 0.25 percentage points.
At its last board meeting on November 6, the RBA kept the cash rate unchanged at 3.25 per cent.
But data since showing a slowdown in planned mining activity, plus continued weakness in the housing, manufacturing and retail sectors, are likely to push the central bank over the line, economists say.
The RBA cut the cash rate in May, June and October, but it appears the effect of this easing is only starting to be felt in the economy.