Monday, March 3, 2008

Will Merv cut or raise?

Australia May Raise Interest Rate to 12-Year High

"Australia's central bank will probably increase interest rates to a 12-year high to cool an economic expansion stoking the fastest inflation in almost two decades".

Posted by alan @ 09:47 AM (518 views)
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3 thoughts on “Will Merv cut or raise?

  • Now there’s a treasury that tackles inflation rather than making excuses and shuffling around weightings.

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  • Paul – It must be noted that their target inflation is 2.0 – 3.0% range. Currently it is around 4.0% and climbing, so in effect they have lost control and should be using 0.5% increases as opposed to 0.25%. Saying that our RPI is up at 4.3% ish (but of course simply because it is higher that CPI our cronies won’t use it), I am not sure what is in the Inflation index for the Aussies but if it compares with the UK’s RPI then the BoE should be following suit, but they wont. I will be surprised if the UK IR’s go down this week, Actually no i wouldnt because they will use some b”llsh!t excuse that inflation will return to target in 33.33 years time leaving room for a reduction.

    Even Rudd thew PM has said he will specifically be targetting inflation, but here is a man who has been in power some 100 days and can firmly blame his predicessor for inflation and therefore make the right HARD decison and whck rates up. Brown has created this mess and doesnt know how to fix it.

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  • mark wadsworth says:

    Tee hee, this’ll push house prices over the brink. Joyous!

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