Reserve Bank tipped to lower rates on Tuesday

CONSUMERS are stubbornly refusing to loosen the purse strings, bolstering the case for a rate cut by the Reserve Bank next week. 
 
But a growing chorus of economists say the central bank's final decision will hinge on events in Europe over the coming days.

Many of the nation's leading economists are tipping the Reserve Bank will lower rates by 25 basis points on Tuesday as "insurance" against further volatility on global markets over the Christmas period.

Retail spending in October climbed only 0.2 per cent to $20.9 billion and fell in the department store sector, where sales have tumbled 3.3 per cent over the past year.   Full Read