Consumer prices rose less than expected in the September quarter meaning a rate rise next Tuesday is unlikely.
Will the banks increase rates anyway?
Earlier this week at CBA's AGM, chief executive Ralph Norris signalled higher funding costs was an issue for banks for the short to medium term due to the lingering impact of the global financial crisis. "All I can say is that we have not made any decision to make any changes to our interest rate positioning at this time," Mr Norris told shareholders
AUD took a dive this morning on the back of consumer price news, falling to just below 98 US cents.
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