Monday, July 31, 2006
Base rate to rise again in Oz
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.