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The one place in the world where the Central Bank isn't flogging the de-flation boogey-man. No ZIRP Down Under. No pegged currency either...
RBA makes pre-emptive strike, economists say
November 2, 2010 - 3:14PM
The Reserve Bank of Australia has lifted the cash rate by 25 basis points to 4.75 per cent at its November board meeting.
It was the first rate rise since May this year, when the central bank raised the cash rate 0.25 per cent, and was the sixth rate hike in eight months...
...The RBA's accompanying statement said the economy had been subject to a "large expansionary shock" from the high terms of trade and has "relatively modest amounts of spare capacity".
Looking ahead the risk of inflation rising again over the medium term remains, the statement said...
...Mr Halmarick said the lower than expected inflation data for the September quarter did not deter the RBA to lift interest rates this month.
Australia's underlying inflation rate, the RBA's preferred measure as it removed volatile price movement, was an annualised 2.4 per cent in in the September quarter.
That was in the middle of the central bank's inflation target band of two to three per cent...
November 2, 2010 - 3:14PM
The Reserve Bank of Australia has lifted the cash rate by 25 basis points to 4.75 per cent at its November board meeting.
It was the first rate rise since May this year, when the central bank raised the cash rate 0.25 per cent, and was the sixth rate hike in eight months...
...The RBA's accompanying statement said the economy had been subject to a "large expansionary shock" from the high terms of trade and has "relatively modest amounts of spare capacity".
Looking ahead the risk of inflation rising again over the medium term remains, the statement said...
...Mr Halmarick said the lower than expected inflation data for the September quarter did not deter the RBA to lift interest rates this month.
Australia's underlying inflation rate, the RBA's preferred measure as it removed volatile price movement, was an annualised 2.4 per cent in in the September quarter.
That was in the middle of the central bank's inflation target band of two to three per cent...
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