THE Reserve Bank will probably cut its official interest rate next week. That will take it back to the historic low-point of 3 per cent.
Another 25 points off the official rate - perhaps 20 points off most home loan rates, but also it is very important to emphasise, 20-25 points off rates on deposits which also are key to spending, as well, is not going to unleash a spending binge.
Yes, it would probably give the critical three weeks to Christmas and the two weeks through the new year a boost.
But it's not going to miraculously save the retail industry from its much more fundamental and much more intractable structural problems.
Print 21:33, 28 Nov 2012 - FX Flows - Source: news.com.au
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