Go Back  British Expats > Living & Moving Abroad > Australia
Reload this Page >

Post election rate rise likely

Post election rate rise likely

Old Jul 28th 2004, 7:46 am
  #1  
Thread Starter
 
Joined: Aug 2003
Posts: 11,149
bondipom is an unknown quantity at this point
Default Post election rate rise likely

http://www.smh.com.au/articles/2004/...?oneclick=true

Interest rate hike back on agenda
July 28, 2004 - 5:34PM

Page Tools
Email to a friend Printer format
An interest rate rise may be back on the agenda after an increase in inflation driven by the falling Australian dollar and consumers.

Official figures released today showed inflation up 0.5 per cent for the June quarter, giving Australia an annual rate of 2.5 per cent.

Although the annual rate was within the Reserve Bank's target of two per cent to three per cent, the figure showed growing inflationary pressures across large sections of the economy.

Health costs rose 3.1 per cent for the quarter, clothing and footwear prices were up 1.1 per cent, transportation costs rose 1.7 per cent and housing prices climbed 0.7 per cent.

Only a 0.9 per cent fall in food costs, driven by an almost 12 per cent drop in the prices of fresh fruit and vegetables, stopped the inflation rate drifting higher.

For the first time in almost a year, prices for tradeable goods - those most affected by the value of the Australian dollar - climbed.

The strengthening Australian dollar has helped push down the price of many goods, particularly in the audio-visual sector, in recent months but the dollar seems to have plateaued.

Treasurer Peter Costello said the figures were a solid result and were on target to remain within the Reserve Banks' inflation band.

"It shows that inflation was moderate during a sustained period of strong economic growth with unemployment at record lows," he said in a statement.

"June quarter results support forecasts that inflation will remain within the inflation target band in the coming year."

But opposition treasury spokesman Simon Crean said Australian families were now facing financial discomfort because of price rises in vital areas.

Health costs have risen 6.6 per cent in the past 12 months, education was up 7.8 per cent, childcare up 13.1 per cent and petrol up 11.7 per cent.

"If (Prime Minister) John Howard and Peter Costello get their way, Australian families will be forced to pay even more for the services they rely on," he said.

Economists were united in saying the figures showed inflation would drift higher in coming months, putting some pressure on the Reserve Bank to consider an interest rate rise.

Westpac's Justin Smirk said many of the falls in today's inflation figures were one-offs, with some sectors still benefiting from the stronger Australian dollar.

"With housing finance still running at a pace considered excessive by the Reserve Bank, robust domestic demand and firm housing activity will keep the upwards pressure on domestic prices," he said.

CommSec's Craig James said it was likely inflation would head towards the three per cent mark.

"Given the underlying strength of the domestic economy and high home-based inflation, rate hikes remain on the agenda," he said.

"There are no grounds to suggest that interest rates will fall any time soon."

HSBC's Anthony Thompson said although inflation was on the move, it was highly unlikely the Reserve Bank board would move on rates ahead of a federal election.
bondipom is offline  
Old Jul 28th 2004, 7:47 am
  #2  
Thread Starter
 
Joined: Aug 2003
Posts: 11,149
bondipom is an unknown quantity at this point
Default

If the RBA was truly independant why are they waiting till after the election?
bondipom is offline  
Old Jul 28th 2004, 8:13 am
  #3  
Kingscliff NSW/QLD border
 
the plumber's Avatar
 
Joined: Jul 2004
Posts: 431
the plumber is a name known to allthe plumber is a name known to allthe plumber is a name known to allthe plumber is a name known to allthe plumber is a name known to allthe plumber is a name known to allthe plumber is a name known to allthe plumber is a name known to allthe plumber is a name known to allthe plumber is a name known to allthe plumber is a name known to all
Default

keeping my fingers crossed for one .

Anything that helps bring house prices down , is a good thing in my book.




allthe best plum
the plumber is offline  
Old Jul 28th 2004, 8:40 am
  #4  
Thread Starter
 
Joined: Aug 2003
Posts: 11,149
bondipom is an unknown quantity at this point
Default

Originally posted by the plumber
keeping my fingers crossed for one .

Anything that helps bring house prices down , is a good thing in my book.




allthe best plum
Bloody excellent for the building/plumbing industry.

QLD is still rising, Sydney Melbourne steady/falling.
bondipom is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.