FNArena Alert: RBA Leaves Rate Unchanged

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By Greg Peel

It’s no great surprise the RBA deigned to leave the cash rate unchanged this morning.

Speculation over the past months has moved from the possibility of another rise in October due to ongoing strength in economic data, to the possibility of a cut following the Fed’s response to the credit crunch, and back to square again. Recent statements from the RBA have dismissed the seriousness of the credit crunch with regard to the Australian economy, so we’re simply back to speculating once more when the next rate rise will be.

The popular call is currently for November, when third quarter economic data will be available. However not everyone is expecting another rate rise in 2007.

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