Latest News & Gossip

Another interest rate cut widely expected

The Reserve Bank of Australia (RBA) is expected cut its interest rate for a third consecutive meeting as inflation eases, local employment growth slows and fears over a European recession grows.

Thirteen out of 14 economists surveyed by AAP say the RBA will cut the cash rate to 4.00 per cent from 4.25 per cent on February 7.

The central bank cut the rate at both its November and December board meetings, taking the rate from 4.75 per cent to 4.25 per cent, due to fears the eurozone government debt crisis will cause a recession. [More]

Advice on rates ... form an orderly queue

Our federal politicians haven't been shy in giving the independent central bank advice on interest rates in the past couple of weeks.

So it will be interesting to see if the Reserve Bank of Australia (RBA) heeds the thoughts of these monetary policy fans when it holds its first board meeting of the year next Tuesday.

The flurry of recommendations kicked off in late January following the release of another set of benign inflation numbers, which have helped fuel expectations the RBA will deliver a further cut in the 4.25 per cent cash rate. [More]

Westpac hints at undersized rate cuts

Westpac boss Gail Kelly became the latest bank executive to try to soften up the public to the prospect of banks not passing on the central bank's expected interest rate cuts next week.

Speaking a day after Westpac showed 400 employees the door, Mrs Kelly refused to speculate on whether the lender would pass on any rate cut by the Reserve Bank of Australia (RBA) next Tuesday.

Mrs Kelly on Friday echoed other bank executives in stressing that Europe's debt crisis has pushed the cost of raising term funds in offshore wholesale markets to fresh post global financial crisis highs. [More]