The Age --- Page: B1 : 24 January 2007 Original article by Nassim Khadem
ABIX Summary
Two key inflation indicators in Australia will be published on 24 January 2007. The Reserve Bank of Australia (RBA) board will scrutinise these figures carefully and will decide whether to increase interest rates at its meeting on 6 February 2007. The two indicators, based on consumer prices, are expected to come in above 3% for the first time in some years. Economists believe that the underlying rate of inflation will be approximately 3.1% or 3.2%, which is just above the RBA's target range of 2% to 3%. Economists are divided about whether the RBA will lift interest rates or not given it has a number of factors to consider: including the prolonged drought, bushfires and consumer behaviour.
