Weekly Market Commodity Report week commencing 31 Oct

This week’s Melbourne Cup won’t be the only thing being punted on Tuesday afternoon.

Following last weeks lower than expected CPI number, an RBA rate cut is clearly back on the agenda.

While financial markets (futures) have a rate almost cut fully priced in, only 60% of the nation’s economists are predicting a move by the RBA this Tuesday.

  

Source: Bloomberg survey on 27 November 2011.

I’ve recently swung into the camp supporting a cut in the cash rate at this RBA meeting, although I do not have an overwhelming conviction on this call – only because I’m not sure how the RBA will factor in the recent positive developments offshore.

01/11/11

The RBA has lowered the official cash rate by 0.25% today to 4.50% after their Board meeting.

This week’s Treasury Commentary is available click here