rate hike next month , page-4

I'm not convinced we'll see rate rises just yet, lot of uncertainty, and they know the strengthening AUD will put downward pressure on prices in time.


"On today's figures, fruit prices are up 27 per cent in the June quarter, contributing 0.4 percentage points to the quarterly CPI increase of 0.9," Mr Swan told reporters in Canberra.

"Banana prices are up 470 per cent compared to where they were prior to the natural disasters with some people paying as high as $14 a kilo." He said Treasury estimates the natural disasters contributed half a percentage point to headline inflation in the March and June quarters.

http://au.finance.yahoo.com/news/Dollar-goes-bananas-rising-abc-2290731332.html

I expect the RBA will be avoiding a knee jerk reaction from this one reading, AUD has become a plaything for speculators (I wonder if they factor this in at all), and propelling the AUD higher will make the two speed economy situation even worse.