Melbourne cup day interest rate rise:

Is it still on? Markets have priced in a 67 per cent chance that the Reserve's cash rate will go from 3.25 to 3.75 % - which would be the biggest rise in almost a decade - when it meets on the Melbourne cup day. The release of the Reserve's bullish views boosted Australian dollar over the last two weeks. This week some important indicators is showing some weakness in the US economy. Especially US consumer confidence and new home sale down by big numbers. Australian economists are also concerned about the inflation; interest rate rise won’t help the situation. So let's see what the reserve bank has to offer.