The Australian Financial Review --- Page: 5 : 22 January 2007 Original article by Adrian Rollins
ABIX Summary
Economists are watching Australia's inflation figures closely. The board of the Reserve Bank of Australia (RBA) will meet on 6 February 2007 and may raise interest rates, if it deems that inflation is too high. The RBA has only a small window of opportunity to raise interest rates, because there will be a general election later in 2007 and it would be difficult politically to increase interest rates close to the poll. Falling petrol and fruit prices are expected to help lower the consumer price index figure for the December quarter of 2006. The RBA will look at this data, the tight labour market and strong consumer demand, and use all the information to make its decision.
