|
|
|
Reserve prepares for interest rate rise
8 Feb 2005
The Reserve Bank put home and business owners on notice for a rise in interest rates. The RBA blamed a chronic shortage of skilled labour, rising production costs and industry bottlenecks as the main reasons a likely rise in official interest rates. The Reserve said the most obvious symptom of an economy bumping up against capacity constraints was Australia's poor export performance. With the volume of exports at the lowest level since 2000, it predicted that the current account deficit would increase to 6.75 per cent of GDP in the December quarter of 2005. While inflation remains within the Reserve's target band of two per cent to three per cent, the RBA expects inflation will rise to three per cent or higher by the end of next year.
The Age, 08/02/05
|
|
