TWEET TALK: No interest

Economists are firm on no rate cut today, but most agree more cuts are inevitable in the second half of the year.

Tweet Talk takes the best of Twitter and brings it to you. Today, economists weigh in on what move they think the RBA will make on interest rates.

The Reserve Bank of Australia meets today to discuss the future of the official cash rate. Last month, the central bank moved to cut rates by 25 basis points, following a 50 basis point cut in May, in the wake of continuing weak conditions and poor economic data. Recent figures have led to speculation that the next likely move will be a hold.

The general feeling among economists is that the central bank is likely to stay on the sidelines this month. Here's a collection of their comments on Twitter.

optionsXpress market analyst Ben Le Brun ‏(@benlebrun) led a chorus of analysts expecting the bank to leave rates as they are.

"On hold this time around..." he tweeted. "Definitely on hold for mine."

Eureka Report investment strategist Adam Carr (@AdamCarrEcon) agreed.

"No change is the best bet," he said.

AMP Capital head of investment strategy and chief economist Shane Oliver (@ShaneOliverAMP) said recent improved data showed the RBA was likely to take a measured approach.

"After two in a row and better GDP and emp data they will want to sit back and see what happens," he tweeted.

Market Economics managing director Stephen Koukoulas ‏(@TheKouk) is also expecting no change.

"RBA to signal, however, scope to cut in inflation is low," he tweeted.

Going one out, CMC chief market strategist Michael McCarthy ‏(@Michael_CMC) says the possibility of a cut should not be ruled out completely.

"Economists say no - market says slight chance," he tweeted. "Market is right more often...".

Koukoulas, however, was unconvinced.

"Mkt pricing for tomorrow's RBA meeting now 8% chance of a 25 cut.." he tweeted. "looks fair at long long long last".

Despite his expectations of an unchanged rate today, Oliver said weak data last week meant more rate cuts in 2012 were inevitable.

"#RBA will still need to cut rates further," he said. "Still see 2.75% cash rate by yr end".

The RBA will release its decision at 1430 AEST today. The official rate currently sits at 3.50 per cent.

All 21 economists surveyed by AAP last week said they did not expect the RBA to cut again on July 3.

Expectations were centred on just one more cut this year, bringing the cash rate to 3.25 per cent.

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