Jump to content
House Price Crash Forum

Bo A To Hike I R This Week Not Due To Cpi Data


Recommended Posts

0
HOLA441

http://www.smh.com.au/news/business/yes-in...4198011045.html

Ross Gittins

July 31, 2006

FOR once the financial markets and wolf-crying media have got it right: the Reserve Bank board meeting tomorrow will decide to raise the official interest rate by 0.25 percentage points.
But whether there's a further increase to come in the next few months is much less certain. Remember that such an increase would take the official rate to 6.25 per cent - the peak it reached in August 2000, when households were far less indebted than they are today.
Why must rates rise this week? Well, not because last week's consumer price index result was a shocker, nor even because the inflation rate has rise to 4 per cent, but because of a deterioration in the outlook for
underlying inflation
.

Such data is ignored, of course, by Gordon where an admission of underlying inflation means failure to steer the economy on a prudent course. Boom and bust anyone?

Edited by Realistbear
Link to comment
Share on other sites

1
HOLA442

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information