The Future for Interest Rates

24 November, 2009 by Leave a Comment

The RBA’s underlying rate of inflation rose by 3.5% in the year to September — less that what the markets and the RBA itself expected.

However, this figure needs to fall significantly for the RBA will put interest rates on hold again.

Rate Rises

Rate Rises

With low inventories and industry capacity-use levels up over 80% once more … you could well see the economy reach full capacity sometime early in 2010.

And this was highlighted in last week’s job figures — showing employers took on 24,500 new workers in October, compared with the 10,000 expected.
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Filed Under: Economic Issues, Industrial Sector, Interest Rates, Property Yields Tagged With: , , , , , , , , , , , , ,

Keep Your Eye on Inflation!

28 July, 2009 by Leave a Comment

Balancing Act

Balancing Act


Australia is supposed to be in the midst of a recession; and yet, underlying inflation is still running at 4% per annum.

If that’s the best we can do … what levels will inflation finally reach, once the economy moves into its recovery phase?

Strong sales have seen retailers cutting prices less than expected. And generally, other prices have held firm — because wages have not yet been affected by increases in unemployment.

On top of this, there are also serious supply constraints on the housing front, which are pushing up rentals.

h3. How will this affect things? [Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates, Investment Opportunity, Property Cycles, Your Exposure Tagged With: , , , , , , , , ,