I totally agree rates have peaked here, but I don't see them falling at least until end of 2006. Rates will stay put, inflation will be in the plus 3% area for a while yet, tourists will flock to our shores with pockets full of yen, yuan, Real$'s, sheckels and roubles, to drink our wine, recline in hot pools, ski our slopes and share our sheep , sorry I meant shear our sheep :eek: All kiwis will sleep easy knowing full well our Big Macs are now the cheapest in the OECD.
What are peoples' thoughts on the RBA decision on rates tonight? I think they'll be left "on hold". Anyone else?
Nobodies expecting a drop till end of year now, so the focus will likely be on his comments. I am expecting him to continue with the line that the there are inflationary pressures in the economy, CPI is still outside their band and there will be no decrease in the near future. Over the past few days housing data has shown a distinct slowdown, which was one of Bollards objectives, as increased housing values has led to increased consumption. However other data out suggests that the economy is still moving forward even if at a reduced level. One thing to consider is what it will do to the NZ$ if the Fed lifts rates next week, which on the face of it looks like a strong possibility. This may be the hit which could turn the kiwi negative again.
Apologies for previous thread, thought you were asking about Bollard and his rates! Preoccupied with the kiwi dollar..........forgot about the aussies