Westpac's chief economist Bill Evans out with a client note
- RBA unlikely to cut cash rate at 3 Nov meeting despite mortgage rate increases
- cut at 1 Dec meeting "is possible if confidence is hit hard" by mortgage rate rises
- base scenario is for rates to remain on hold for remainder of 2015 and 2016
Westpac in agreement with Eamonn that the RBA is not necessarily going to cut rates to offset the mortgage rate rises
They've wanted to cap the house price bubble for a long time now after all, as this observer also points out