Interest rates should stay low with the latest TD Securities–Melbourne Institute Monthly Inflation Gauge showing inflation is flat and benign.
Annette Beacher, Head of Asia-Pacific Research at TD Securities, says: “This October report is rather benign, and starts the final quarter of the year with a whisper.”
Headline inflation was only 2.1 per cent higher than a year ago, suggesting no sign of a pickup in inflation in the final months of 2013.
Beacher says the Reserve Bank board meeting tomorrow is likely to leave the cash rate unchanged at 2.5 per cent for the third consecutive month.
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