The Australian --- Page: 31 : 23 April 2007 Original article by Scott Murdoch
ABIX Summary
Economists in Australia are awaiting the release of the inflation figures on 24 April 2007 to determine the likelihood of an interest rate rise in May. They are suggesting that an inflation increase of 0.7 per cent or more, prompted by petrol prices, housing and private insurance, will cause the Reserve Bank of Australia to implement a rate rise. Most analysts had expected such a move in April. A steadying of rates would rely on an easing of price pressures. A rise on 1 May is 55 per cent likely, according to the futures market.
