Betting on another Rate Rise
The bets are on, and another rate rise is more likely than choosing a Cup winning horse.
"I think the odds are better than you'll get on any of the horses racing on Melbourne Cup Day," said ANZ chief economist Saul Eslake on ABC Radio. "I would say that the probability of the Reserve Bank announcing a lift in the cash rate on Wednesday morning is upwards of 80 percent."
If the Reserve Bank goes ahead with the expected rise this Wednesday, interest rates will hit 6.75 percent. The rise will be the sixth consecutive since the Howard Government won the 2004 federal election, with a promise to keep interest rates at record lows.
Prime Minister Howard has admitted another rate rise is virtually inevitable.
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