rba's emergency meeting

Could be a much larger rate cut next month than some were predicting last week. Another 125 basis point cut on the cards before christmas. I thought 100bp was on the cards but gee, who knows at the moment.... Maybe reserve will end up with an official cash rate at 2% before the end of next year,........

Financial markets have priced in a 125-basis-point interest rate cut at the next Reserve Bank board meeting, which would be the deepest reduction since April 1990, when the central bank slashed rates by 150 basis points.

However, financial markets have priced a 52 per cent chance of the RBA calling an emergency meeting next week to begin that sharp easing policy with a quarter of a percentage point cut.

Since September, the RBA has cut a total of 200 basis points, taking official rates to 5.25 per cent, the lowest level in more than five years.