I'm trying to decide where Australia is sitting in the current business cycle? I was told by a Stock-Broker the other day that we are at a definite market bottom. If thats the case, why are we raising interest rates.
If we're measuring economic performance by the current GDP Growth compared to it's long term average (I'm not sure I understand the current figures, June Quarter 1.2% growth) then because thats below the long run average of 2.5-.35 % then does that mean we're at a market low.
Again, if we're at a low like my Stock-broker friend said, why are we raising interest rates when Exports are playing a pretty big role in our inflationary figures?
Am I looking with too narrow a view? Would someone be able to explain this or does anyone know where we are sitting in relation to the current business cycle.
