Next Tuesday is going to be huge

Photo by Ezra Shaw/Getty Images

Next Tuesday’s RBA rate decision is quickly firming as a favourite to steal the limelight from the race that stops the nation, the Melbourne Cup.

According to a survey of 28 economists by Bloomberg, 11 are predicting the RBA will cut the overnight cash rate to a new record low level of just 1.75%.

Some of the heavy hitters backing the rate cut call include UBS, Morgan Stanley, Macquarie Bank, HSBC and AMP Capital Investors. Australia’s big four banks are predicting rates will stay on hold at 2.0%, including ANZ, who still believe the cash rate will fall to 1.5% before the middle of 2016.

At the close of trade on Friday cash rate futures put the odds of a 25 basis point cut next Tuesday at 47%.

It’s literally a toss of a coin, but still significantly better odds than winning on the Cup.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.