The Age --- Page: 10 : 28 February 2007 Original article by John Collett
ABIX Summary
The Reserve Bank of Australia (RBA) has reduced its inflation forecast for 2007 to less than three per cent. This is considered good news for home buyers, even though the new RBA Governor, Glenn Stevens, testified to the Australian Parliament that the central bank has some fears about wages growth and low unemployment triggering inflationary pressures. Although the rates outlook varies according to economists and analysts such as Chris Caton, BT; Scott Haslan, UBS; Craig James, CommSec; Bob Mellor, BIS Shrapnel; Shane Oliver, AMP; and John Symond, Aussie Home Loans; it is generally agreed that rates will fall by late 2007 or in 2008.
