The next move must be DOWN, imo. With investments on most fronts performing poorly, retail spending has taken a dive. Raising rates will do naught for investments in mining and will not curb the inflation being caused by our two speed economy. Just talking to people in a reatil environment it is so blatantly obvious the difference to someone employed in mining related industries to someone not. Professionals, uni students and academics are being superseded by cashed up bogans,(not that there is anything wrong with that, many are my buddies), at least here in WA, who have piles of money to throw around while I struggle to pay a mortgage and feed the kids on 50 hrs/week with a miserly 5 year Uni degree!
Our dollar could certainly do with a rate cut.
I hope the RBA uses some common sense and sees that a rate increase will have disastrous effects, imo.
God forbid ANY unexpected downturn from China and we are screwed big time, imo, with the majority of people deriving their money from this avenue somewhat contributing to any inflationary pressure's and the only ones engaging in retail spending(especially restaurants,hotels,cars,jewellery and many luxury items) are living way beyond there means-I see it everyday and I fear the consequences of a rate hike and downturn in China!
Good luck all, may China be everlasting insatiable for our minerals.
