Interest Rate News

October 17, 2012/News

Another round of interest rate cuts are looming after the Reserve Bank warned the outlook for growth has weakened as the mining sector slows sharply.

The minutes from the RBA’s October board meeting has left the door wide open for further rate cuts – starting on Melbourne Cup Day – as the mining investment boom is tipped to reach an earlier and lower peak than forecast.

Concerns about rising unemployment will also boost the case for further reductions in the cash rate, which has already fallen to its lowest level in three years. This month, the RBA cut the interest rate 25 points to 3.25 per cent, its fifth reduction in the past year.