Wednesday

Infation Set to Remain Steady


LATEST AUSTRALIAN BUSINESS NEWS

The Reserve Bank of Australia (RBA), in its latest quarterly statement has made its clearest indication yet that a further interest rate rise this year is most unlikely. Just as US rates have edged up a further 0.25%, the RBA has indicated that the chance of a rate rise is equal to that of a rate drop.

At the same time, the RBA said that in its view the Australian economy was growing at a reasonable rate and that inflation was likely to be in its acceptable range of just 3% in 2006. At the same time the Reserve said that in 2007 inflation will remain steady - also at 3%.

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David

david.taylor@agarcarlyon.com