* Net exports add 1.5 ppt to GDP, current account narrows
* Home building expands, while prices start to cool
* Economy looks to have grown at least 0.7 pct in Q3
* RBA seen almost certain to keep rates at 2 pct
* RBA
By Wayne Cole
SYDNEY, Dec 1 (Reuters) - Australia's economy enjoyed a huge lift last quarter from a rebound in resource exports, helping fill a hole left by slumping business investment and lessening the need for another cut in interest rates.
Tuesday's trade data came as the Reserve Bank of Australia (RBA) is almost certain to hold steady at its last meeting of the year, having already told investors to "chill out" over the Christmas holidays. An announcement is due at 0330 GMT.
Interbank futures 0#YIB: imply almost no chance of a cut in the 2 percent cash rate, marking seven months since the last easing. The odds of a move next year are put around 50-50.
A Reuters poll of analysts found all expected a steady outcome, though many assumed the RBA would again note that low inflation meant there was scope for a move if needed. AU/INT
Policy makers have been encouraged by signs of recovery ranging from strong employment to better business sentiment and a big boost to tourism from a low local dollar.
Data due on Wednesday should show the economy regained some momentum in the third quarter after a lacklustre second quarter.
Net exports alone likely added an eye-popping 1.5 percentage points to growth - their biggest contribution since early 2009 - as export volumes jumped 5 percent while imports fell 2 percent. The country's current account deficit narrowed 12 percent to A$18 billion in the quarter.
The contribution from trade was well timed as it helped offset a drag from government investment which dropped over 9 percent in the third quarter from the previous three months, partly due to a fall in defence spending.
Analysts expect Australia's A$1.6 trillion of gross domestic product (GDP) rose around 0.7 percent in the quarter, lifting growth for the year to 2.3 percent from 2.0 percent. ECONAU
Supporting activity has been a boom in home building which looks to have some time to run yet. Approvals to build new homes surprised by rising 3.9 percent October, with approvals for multi-unit blocks were up almost 30 percent on a year ago.
The expansion of supply is in turn combining with tighter lending rules to take the heat out of house prices. Figures from property consultant CoreLogic RP Data showed Sydney prices slipped 1.4 percent in November, while Melbourne took a 3.5 percent tumble.
Nationally prices eased 1.5 percent for the month while annual growth cooled to 8.2 percent.
That should be a relief to the RBA, which has been worried that excess borrowing for home investment could inflate a bubble, and remove one hurdle to a further rate cut.