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RBA set to deliver pre-Christmas rate cut


Concerns about slowing domestic growth should move the Reserve Bank of Australia (RBA) to deliver an interest rate cut in time for Christmas.

The RBA board meets on Tuesday (December 4) for its last monthly rate decision until February next year, and an AAP survey of 15 economists shows that most expect a cut of 0.25 percentage points.

At its last board meeting on November 6, the RBA kept the cash rate unchanged at 3.25 per cent.

But data since, showing a slowdown in planned mining activity, plus continued weakness in the housing, manufacturing and retail sectors, are likely to push the central bank over the line, economists say.

The RBA cut the cash rate in May, June and October, but it appears the effect of this easing is only starting to be felt in the economy.