Surprise As Inflation Figures Fall
Article Courtesy of SMH BusinessDay.
The Prime Minister Julia Gillard will be heading into the polls with the a sign of good relief as the latest inflation figures show a decline, effectively placing a halt upon the prospect of higher mortgage rates in the lead-up to the election. The RBA’s meeting on Tuesday will more than likely vote to keep the interest rate on pause after acknowledging the rate of inflation fell to 2.7 %,a first in three years it has been below the benchmarked 3% for the RBA.
The benchmarked rate of inflation of 0.6% should of only looked to be 0.3% had it not been for the once off 25% increase in the tobacco tax.
”There will be no interest rate hike next week,” said a Macquarie Group economist, Rory Robertson. ”If you were thinking the Reserve Bank might make the election campaign interesting, think again.”
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