Economists and major banks divided on December rate cut: Bloomberg

The smallest majority of economists tip the RBA to leave the cash rate unchanged on December 4, according to the latest Bloomberg survey.

Out of the 25 economists surveyed today, 13 tip the cash rate to remain at 3.25%, while 12 expect it to fall  3.00%.

The major banks are neatly divided, with ANZ and Westpac tipping a rate cut and Commonwealth Bank and NAB expecting the RBA to hold firm.

Westpac chief economist Bill Evans says it’s the bank’s view that “lower interest rates will be required to ensure that the non-mining sector plays its part in compensating for the more modest contribution from mining”.

“The decision for December seems to be very much live.

“It must be tempting for the board to increase the chances of the uplift in growth from non-mining by easing rates further,” says Evans.