The Australian Financial Review --- Page: 3 : 5 February 2007 Original article by Adrian Rollins
ABIX Summary
Financial markets believe there is little chance that the Reserve Bank of Australia will lift interest rates when it meets on 6 February 2007. Lower petrol prices helped ease inflation in the final quarter of 2006, and domestic demand seems to be easing after three interest rate rises during the year. Figures due out on 5 February are expected to show that activity in the housing industry has slowed. However, economists fear that if rates are held down for an extended period, household spending could accelerate in view of high employment levels. This would increase pressure for rate rises later in the year.
