interest up 25 basis points, page-7

I was not anticipating a rise either until, that is, I read this article;

http://www.businessspectator.com.au/bs.nsf/Article/SCOREBOARD-pd20101102-ASRU2?OpenDocument&src=sph

Rather than the RBA looking at the current data, they were most likely pre-empting a wave of strong economic activity to hit our shores rather soon - certainly China is roaring out of the blocks having caught me out (still out of the market unfortunately). Rather than being reactive, they are now looking at the available signs for strong growth. What is in their favour right now is the strong dollar - raising rates now will hurt us much less than had the dollar tanked. Better to wind the market back when strong rather than when insipid.