Fed: RBA expected to decide on rate cut at meeting today

AAP General News (Australia)
12-04-2001
Fed: RBA expected to decide on rate cut at meeting today

The Reserve Bank board is expected to decide on another interest rate cut at its last
meeting for the year today, bringing an early Christmas present for homeowners.

Newspaper job advertisements have fallen to a four-year low, according to the latest
ANZ survey, but the drop has been offset by a stronger than expected bounce in retail
trade.

The Australian Bureau of Statistics says retail sales grew 1.3 per cent in October,
seasonally adjusted, with particularly strong growth in household goods and clothing.

CommSec chief economist CRAIG JAMES says unemployment could peak at close to 7.5 per
cent and the Reserve Bank would be right to be concerned.

Building approvals figures for October will be released today, and are expected to
show a rise of about 0.3 per cent after September's 4.3 per cent fall.

The Reserve Bank's interest rate decision will be announced tomorrow along with the
economic growth results for the three months to September.

Economists revised down their growth forecasts for the third quarter after a higher
than expected fall in non-farm inventories.

AAP RTV kmh/dl

KEYWORD: ECONOMY (CANBERRA)

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