No need for rate cut on Melbourne Cup day - Shadow RBA »

Europe's problems are not lessening. The refugee crisis will strain government budgets while the Greek debt crisis is only enjoying a brief hiatus. China's economy still looks shaky and growth is likely to remain relatively soft. The Reserve Bank of Australia (RBA) has no need for a rate cut on Melbourne Cup Day and should keep official interest rates on hold in November, The Australian National University (ANU) RBA Shadow Board has found. The RBA Board lowered the official cash rate from 2.25 per cent to 2.0 per cent in May. However, Australia's four major banks have all increased interest rates in the past month due to tougher prudential standards, prompting markets to factor in a 60 per cent chance of another official rate cut as early as this week. The RBA Board will meet on Tuesday to review official interest-rate settings.