BRW --- Page: 20-21 : 13 March 2008 Original article by Sean Aylmer
LexisNexis Summary
The Reserve Bank of Australia (RBA) finds itself in a tricky situation at the present time in terms of its policies. Whereas some parts of the economy, particularly in areas relating to the resources boom, are buoyant, other areas like the housing market are not doing so well. The inflation rate of 3.5 per cent is above the RBA's "comfort zone", suggesting that it may have to lift interest rates again. However, this will impact on home owners who are already struggling with mortgages, while approvals for new homes are likely to decline further.
