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Realistbear

New Zealand's Inflation Soars To 4% Forcing I R Hikes

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http://www.stuff.co.nz/stuff/0,2106,3734925a13,00.html

Rate cut fades as inflation hits 4pc

18 July 2006

By JAMES WEIR

The Reserve Bank is likely to keep interest rates high till the middle of next year at the earliest, economists say, after annual inflation hit 4 per cent, the highest rate since December 2000.
Inflation has been boosted by rapidly rising petrol prices, which have gone up almost 15 per cent in the past three months. International airfares have also risen more than 7 per cent.
Petrol companies pushed up prices by 6 cents a litre yesterday to a record $1.77 a litre for 91 octane.

Perhaps the Kiwis would not try to cover up the truth by manipulating their CPI basket as Gordon does here?

OZ looks like they are to follow with still more hikes:

http://www.iii.co.uk/news/?type=afxnews&am...;action=article

SYDNEY (XFN-ASIA) - The Reserve Bank of Australia will likely raise interest rates by 25 basis points to 6.00 pct when it next meets in August, National Australia Bank chief economist Alan Oster said in a market note.

With the Fed and ECB hiking in August Gordon may be feeling the pressure to follow suit with a series of HPI busting hikes--not :lol:

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Emerging mega economy India is in the same predicament with soaring IR about to hit:

India to Pay Highest Yields Since 2002 as Rates Rise
(Update1)
July 17 (Bloomberg) -- India may pay the highest borrowing costs in more than four years as the central bank increases interest rates to curb inflation.

Thailand must hike also:

http://etna.mcot.net/query.php?nid=23377

GPF sees higher interest
and inflation key risk factor to investment in 2nd half
BANGKOK, July 17 (TNA) – Investment in all industrial sections in Thailand in the second half of this year runs a higher risk from an increase in inflation rates and interest rates for both deposit and lending, according to the Government Pension Fund (GPF).

Its a worldwide move upward with IR. Most see a hike by the ECB in August and the Fed to move again on 8th August. That leaves Gordon on his own-frozen in the harsh glare of the inflation spotlight. He will either have to remove some more items from the basket and replace them with items that are deflating or he will have to come clean and admit that the UK is in the same boat as everywhere else and that inflation is present in the economy.

Edited by Realistbear

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Realist,

Why don't you e-mail the Bank Of England and ask them why oil is inflationary in other countries

and why we have seen none or very little!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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