From today, Australian betting agency, Centrebet will be taking wagers from punters on changes to the Reserve Bank’s official cash rate, with the initial odds favouring a drop in rates when the bank meets next Tuesday.
Centrebet is paying $1.25 for a rate cut of one quarter of a per cent and $3.50 for a cut of more than a that.
If you place a bet for rates to stay the same, and you’re right, the bookmaker will pay you $5 and if you back an increase of one quarter per cent – a scenario considered highly unlikely – you’ll get $51.00
For a rate rise of more than a quarter per cent, Centrebet is paying $201.00!
A spokesman for Centrebet predicted the book would be popular because of the high level of interest in rate movements.
I’m not placing a bet, I’ll save that for the Melbourne Cup. But if you want my tip – go for the favourite - a quarter per cent reduction.
(Source: The Australian, 27 August 2008)
All prices quoted are AUD