The expected interest rate hike in November will be the result of the tax cuts announced in the May Budget, together with other well documented issues that are adding to inflation, writes Stephen Koukoulas.
Inflation
Which comes first: the election or the rates rise?
Market economists expect another rates rise before the end of the year. The main question is when. Before, after or during the election campaign?
The Economy: She’ll be right, mates…for the moment
Two main interpretations have emerged from readers of the Reserve Bank’s quarterly economic statement, released yesterday.
The Economy: Is an interest rate U-turn likely?
Will the global market crisis force the Reserve Bank to perform a U-turn? This is the big question for policy this week and this month in Australia, and elsewhere.
The economy: inflation, rate hike and Howard’s folly
As expected, the Reserve Bank announced this morning that it would increase the cash rate target by 0.25% to 6.5% - the highest level since November 1996.
The Economy: Market correction and interest rates
Wall Street fell again on Friday night - with much of the fall occurring in the last half-hour of trading. Many people, including Henry, have been calling for a correction and urging caution by investors.
The Economy: Rate hikes to come
While the global outlook is for strong, non-inflationary growth, China’s economy is overheating (goods and services inflation 4.4%), the US economy is struggling with the fallout from indiscreet (“sub-prime”) lending with the ripples spreading to Australia thanks to the losses of highly praised hedge funds.
The Economy: Markets boom
US markets surged overnight. Buoyed by generally good earnings, the Dow closed above 14,000 for the first time, up on the day by 0.4%.
Why John Howard never made the cover of Euromoney
John Howard’s old boss, Malcolm Fraser, has rejected claims he stopped his treasurer from coming forward with reform proposals.
