No cut, but RBA may move again soon Local shares fall for second straight day. If you want to borrow to build, you might yet get another rate cut. HOMEOWNERS may be in line for another rate cut as early as next month, after the Reserve Bank left the cash rate on hold at 3 per cent yesterday. At its first meeting of the year, RBA governor Glenn Stevens said while it was "prudent" to leave rates steady this month, the door was open for further cuts ahead of the Federal Election if the economy starts to falter. Despite slashing rates by 1.25 per cent in the past nine months, the central bank, in a boldly worded statement, expressed a clear bias towards cutting rates further. And a number of senior economists expect the RBA will deliver one or even two more cuts to potentially take the cash rate to a record low of 2.5 per cent before the end of the year. But retail and housing industry groups yesterday questioned the central bank's decision, warning it was too slow to act. Mr Stevens highlighted the strengthening property market, a pick-up in consumer spending and households shifting away from a saving bias towards more risky assets as positive improvements in recent months. "The downside risks appear to have abated, for the moment at least," he said. Present indications are that moderate growth in private consumption spending is occurring. (But) the inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand. Treasurer Wayne Swan yesterday claimed - to jeers from the opposition during Question Time - that the government's "strong fiscal policy" had played a role in keeping inflation contained and given the RBA the flexibility and room to cut rates. But economists are divided over the RBA's next move. Westpac chief economist Bill Evans said the RBA has a clear bias to further rate cuts and will cut again in March. ANZ is tipping at least two more cuts by the end of the year. But with mortgage rates below their long-term average and China strengthening, HSBC chief economist Paul Bloxham is tipping the RBA will stay steady and may even lift rates by end of this year. The wild card for future rate movements is the unemployment rate. Some analysts expect it could rise from its current 5.4 per cent to around 6 per cent by year's end - with an additional 50,000 joining the jobless. The futures market is tipping there will be at least one, if not two, rate cuts before September, taking the cash rate to its lowest-ever point of 2.5 per cent. An increased risk appetite among households has seen the share market rise 20 per cent in the past six months and the property market stabilise. After four quarters of falling prices in 2011, the official figures released yesterday show capital city house prices rose 2.1 per cent last year. And a report from Fitch Ratings shows arrears have fallen to 1.2 per cent by the end of September last year - below the five-year average of 1.56 per cent. Even in traditionally high mortgage stress areas such as southwest Sydney, west of Melbourne and south of Brisbane defaults are down. It identified Queensland as the worst performing state with the highest level of mortgage delinquencies in holiday areas - Gold Coast and Sunshine Coast.