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ISCOVER
Staff Reporter
Brokers remain fairly conservative when it comes to rates, with the majority expecting the Reserve bank to leave the cash rate on hold when the board meets later today.
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A new poll by 1300HomeLoan found 63 per cent of the 132 respondents expect the cash rate to sit at 3 per cent for at least another month, while 34 per cent said they expected to see a 25 basis point rate cut.
But while brokers expect the Reserve Bank to err on the side of caution, 1300HomeLoan managing director John Kolenda said no rate cut today would be a “bad start to 2013”.
“The RBA needs to take action to get the domestic economy out of its current malaise,” he said.
“I’d like to see the central bank take more decisive action on the cash rate and reduce it by as much as 50 basis points in the short term to help get the economy moving.
“Recent economic data is a mixed bag, with few positives so Australian mortgage holders would expect to see rates lower than their present levels.
“Our official rate is much higher than many of our major trading partners.
“While the Australian dollar continues to be much stronger than other currencies, our struggling exporters and the nation’s all-important tourism sector keep feeling the pain.
“You still have a construction industry at its lowest levels now for many years, and struggling retailers crying out for relief.”
