News Headline Summary

PREVIEW: Reserve Bank of Australia interest rate announcement for November due at 0330GMT/2130CST

- 1 hour to go until the closely watched RBA interest rate announcement.
- At present of the 27 economists surveyed 20 are expecting a 25bps cut and 7 are looking for a hold.
- Analysts have suggested that the Bank may want to continue the process of cutting rates to provide some offset to the currency tightening in the AUD.
- However, although the majority of economists are expecting a rate cut today the odds of that happening have been reducing from around an 80% certainty to just 50%, this follows strong CPI data in Australia in Q3 and a recovery in iron ore prices.
- To note, the closely followed RBA watcher Terry McCrann of the Herald Sun has said he is expecting a hold today and historically his calls do have a high degree of accuracy.
- The decision is due for release at 0330GMT/2130CST.

06 Nov 2012 - 02:00 - - Source: RANsquawk

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