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ISCOVER
Staff Reporter
A majority of mortgage brokers believe the Reserve Bank will keep the cash rate on hold when the Board meets in October.
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According to a new poll by Loan Market, 52 per cent of brokers believe the RBA will hold fire on rates in October and instead choose to lower the cash rate from its present level of 3.5 per cent during the November Board meeting.
Loan Market corporate spokesman Paul Smith said only 10 per cent of brokers believe the central bank could reduce rates in October, while 11 per cent tip the RBA to wait until its December board meeting.
12 per cent of respondents have forecast two rate cuts before the end of 2012.
“Overall, 85 per cent of our broker respondents are expecting some further relief from the RBA this year,” Mr Smith said.
“The majority are tipping a Melbourne Cup day cut this year and the RBA certainly has form on the board for taking action on the first Tuesday in November.
“They have moved rates on Cup day every year since 2006, so the betting seems to favour more action in November this year.”
