A sharp fall in the number of homes approved for construction in November has increased the odds for another rate cut next month.

The Australian Bureau of Statistics said today the number of approvals fell by a seasonally adjusted 12.8% in November, compared with a revised fall of 3.1% in October.

Economists had been expecting a fall of 1.5%.

ICAP senior economist Adam Carr described the results as 'completely horrific'.

The Australian