OK. I saw this yesterday, and I couldnít believe it.
So I checked again today and its still there.
I still cannot believe it, but it is still there, so here goes.
I donít normally read Terry McCrann, nothing against the bloke just donít normally read the paper he writes for, but yesterday I read his column Ė he is a business/economics writer.
Anyway here is a link to the column.
The bit that floored me was this:
The most important message out of the Reserve Bank decision for you is that such a day of turning might be closer than you think. Not in the next few months, but towards the end of the year, we could start to watch these monthly RBA statements for the first hint of coming rate increases (my underlining).
Now so far I have refused to get involved in the doom and gloom outlook; economies and markets boom, they bust, they continuously cycle.
But it has been pretty clear that the current bust is of monumental proportions and even I (an habitual optimist) am surprised that anyone could be flagging rate hikes in Australia towards the end of the year (or even early-mid 2010).
Anyone any thoughts on this?
Is it remotely possible that the RBA could be considering rate hikes towards the end of the year Ė it seems preposterous to me, but hey, what do I know?
What sort of scenario, and what is its likelihood, could see rate hikes that soon?