Friday, April 6
The Reserve Bank of Australia may have to start a new round of interest rate rise because the rate of inflation pickled up speed last month on climbing petrol and transport prices fueling expectation for an interest rise rate. This may have to happen as early as this week as it struggles to contain wage and price pressures from an economy running at nearly full capacity. In March alone, headline inflation rose 0.5%. The Australian published an article entitled "Inflation Spike Fuels Rate Hike Fears" on April 2. If I lived in Australia at this point, I would be nervous that interest rates would rise too. TD Securities Global Strategist Stephen Koukoulas stated "'The strength in the domestic economy and unambiguous price pressure should cement the case for an interest rise rate.'"
http://www.theaustralian.news.com.au/story/0,20867,21488762-20142,00.html
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