On weak economic data, RBA may cut rates by 50 points

Weak numbers for housing approvals and retail sales, coupled with the turmoil sweeping through global financial markets, mean the Reserve bank of Australia may now cut rates by as much as 50 basis points, economists said.



RBC capital markets economist Su-Lin Ong said a picture was now forming that the RBA may cut more than the 25 basis points expected by some.

"Amid a further deterioration in the global credit crisis and mounting downside risk to global growth, the risk is for a 50 basis point move at next week's October board meeting," Ms Ong said.

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