interest rate anaylysis u b the judge !

WAYNE SWAN: Today's decision is painful reminder that as the economy recovers, the Reserve Bank will independently move rates from emergency levels through to more normal levels. Now I know that's cold comfort for a lot of families, and a lot of people in business. But that's the reality of a strengthening economy.

Sound very familiar??????????

then: http://www.youtube.com/watch?v=OFp4rI-EvfY


Our rate rises have not been helped by:
The pink batts fiasco,multi million $$$ school halls and
the wasteful unmeans tested $900 chqs sent to every man and his dog which in the end were not necessary.

We have 2 booms atm one in property and the other in resources backed by China.

China is pouring huge money into resources & property,so little wonder that some auctions in the bayside and eastern suburbs of melbourne,the hq of our mining giants, are being conducted in mandarin resulting in irrational exuberance prices,because they don't know the real value and the higher appreciating o/seas currency once converted to aussie distorts the true value.

Soft retail sles & building approval numbers make the
mths data statistically unreliable.

Interest rates were very low last year and are going up up and away from now on.

The developing countries CHINA & USA need to be watched carefully.There markets can alter very quickly.

Atm China's best outlook is priced in and could surpise on the downside whilst the USA is priced for a modest recovery and could surpise on the upside.