Most pundits have already factored in an interest rate rise this month, with another one expected before the year is out.
Doing a google news search for "australian interest rates" for example yields no less than 2,730 stories in the last week! However, some economists (notably the Challenge Bank's Dr Ron Woods - no relation to the Rolling Stones' guitarist) have pointed to the freak banana and petrol prices being mainly responsible for the recent inflation rise (to 4%). The Federal Reserve meets today - any announcement on a rise will be at 9.30am AEST tomorrow. Considered wisdom on the subject is a rise to 6%, the highest rate since mid 2000. |