Interest rates tipped for a substantial rise October 18, 2004
Interest rates are likely to rise substantially in the next three years while the economy heads for a downturn, the economic forecaster BIS Shrapnel has warned.
BIS Shrapnel made the forecast in its latest Long-Term Forecasts 2004 to 2019. The report said it was a myth to think that Australia's moderate growth, low inflation and low interest rates could continue forever.
Its senior economist, Matthew Hassan, said the Reserve Bank would have to increase rates between two and three percentage points in the next three years.
The expected low unemployment levels next financial year would create a skilled workers shortage, which would mean many businesses were likely to pay higher wages, he said. Higher wages would cause price rises in 2006.
"These two years of inflationary growth will be the trigger for substantial interest rate rises, with the official cash rate expected to peak at around 8 per cent in late 2006," Mr Hassan said.
BIS Shrapnel still predicts a recession in 2007-08. Its report said a business investment bust in 2007 would follow the current rush to invest to meet demand.
Joined: Mon Oct 18, 2004 1:03 am Posts: 24177 Location: Australia
I'm almost happy about this
Just because it's so fucking hilarious!
_________________ Oh, the flowers of indulgence and the weeds of yesteryear, Like criminals, they have choked the breath of conscience and good cheer. The sun beat down upon the steps of time to light the way To ease the pain of idleness and the memory of decay.
Joined: Sun Oct 17, 2004 1:38 am Posts: 5575 Location: Sydney, NSW
None of you seriously thought that either the Coalition or the ALP have any influence on monetary policy did you?
The RBA is wholly independent, and interest rates trend globally. Fiscal policy is nothing more than a political goody bag these days. No government is gonna get away with huge deficits or surpluses anymore.
_________________
Jammer91 wrote:
If Soundgarden is perfectly fine with playing together with Tad Doyle on vocals, why the fuck is he wasting his life promoting the single worst album of all time? Holy shit, he has to be the stupidest motherfucker on earth.
Joined: Mon Oct 18, 2004 1:03 am Posts: 24177 Location: Australia
shades-go-down wrote:
None of you seriously thought that either the Coalition or the ALP have any influence on monetary policy did you?
We know, that's what makes it so delicious
_________________ Oh, the flowers of indulgence and the weeds of yesteryear, Like criminals, they have choked the breath of conscience and good cheer. The sun beat down upon the steps of time to light the way To ease the pain of idleness and the memory of decay.
Joined: Sun Oct 17, 2004 1:38 am Posts: 5575 Location: Sydney, NSW
vacatetheword wrote:
shades-go-down wrote:
None of you seriously thought that either the Coalition or the ALP have any influence on monetary policy did you?
We know, that's what makes it so delicious
Love it.
Loved the "we can't meet our Budget promises" disclaimer too by Costy. Typical treasurer talk. Crean woulda done it too if Latham had let him talk.
_________________
Jammer91 wrote:
If Soundgarden is perfectly fine with playing together with Tad Doyle on vocals, why the fuck is he wasting his life promoting the single worst album of all time? Holy shit, he has to be the stupidest motherfucker on earth.
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