Treggs,Yes and no. Higher rates are normally poison for banks as...

Treggs,

Yes and no.

Higher rates are normally poison for banks as they themselves are large borrowers. Australia though is probably a special case since the banks
can pretty much pass on any higher costs ... and more (see CBA today).

For retailers, a higher AUD means lower import costs, and since they don't need
to pass on the saving straight away, it also means a higher profit margin.

For exporters .... no need to discuss that.

For the consumer .... I don't think higher rates are a good thing. ( I think that is the very aim of a rate rise).

I think it is a mixed bag and I guess it is very difficult to correctly predict what 'general' impact a rate rise has.

While I do respect the RBA, I start to wonder how much of the inflation we see here is actually imported, and how much is really generated by that apparent strength of the Australian economy. I wonder whether we sit in the same boat as Brazil. Strong economy due to resources boom, but it is to a large extend cheap $US that flow into the country and push up prices.