Tuesday December 7, 2010
 
RBA too quick on the trigger – report  

Although the Reserve Bank of Australia (RBA) is expected keep rates on hold at its December meeting today, its November rise may have been premature, says leading industry analyst and economic forecaster, BIS Shrapnel.
 
The RBA is clearly worried that the coming mining boom and current strong employment growth will lead to serious capacity constraints and inflationary pressures. However, BIS Shrapnel’s latest Economic Outlook Bulletin reports the economy has hit a soft patch since mid-year and, at this stage, the recovery is still fragile.

Contact: Richard Robinson