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ISCOVER
Jessica Darnbrough
While some economists speculate that the Reserve Bank of Australia could drop the official cash rate as early as next month one industry figure believes there will be no change in 2011.
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Speaking to The Adviser, St George’s general manager, broker Clive Kirkpatrick said while the latest minutes suggest the RBA has begun to relax its stance on monetary policy, there will be no immediate change in the official cash rate.
“We are looking at no change at the November and December board meetings,” he said.
“I think the RBA will look to relax its stance on monetary policy in the first quarter of next year. Interestingly, the NSW TAB is offering $1.40 for no change and $2.60 for a 25 basis point drop.”
Mr Kirkpatrick’s stance on rates is supported by recent data surrounding unemployment.
Last week, new data from the Australian Bureau of Statistics found an additional 20,000 jobs were created in September – making a Melbourne Cup day interest rate cut very unlikely.
Jobs Minister Chris Evans said the strong bounce in jobs figures underlined the strength and resilience of the Australian economy in the face of global instability.
