BRW --- Page: 18 : 21 February 2008 Original article by Chris Richardson
LexisNexis Summary
The Reserve Bank of Australia (RBA) is concerned about the risk of rising inflation. The decision by the Australian Government to cut taxes will make the task of combating inflation even more difficult for the RBA. Economists warn that the proposed tax cuts will lead to more imports and, consequently, to higher inflationary pressure. The RBA is trying to reduce consumer spending while the Government's action will lead to a rise in spending.
