Henry Thornton writes:
The Reserve Bank has left Interest
Rates unchanged (announced at 9:30 today), just as Henry predicted in his
monthly RBA advice.
Meanwhile the US Fed has today
announced that it will raise interest rates for the 12th straight time, leaving
the base rate at 4 percent. Stocks were down at the end of the day, but not as
much as they could have been after they rallied in response to the news, the Dow
making up about half of the losses. Our dollar was off a bit prior to the news
on expectations that the Fed would hold steady, so it will probably correct
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Henry thinks things will be pretty
settled here until we see how the anti-terror and industrial relations
legislation packages pan out, but there is plenty of upwards pressure around, so
don’t be surprised to see a rise sooner or later.
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