My gut was telling me some time back that interest rate rises were not over by a long shot and the chart on American temp payrolls since the 1990s in the following article convinces me that that is indeed the case. Whoever heads the Reserve in coming months doesn't alter the fact that he/she has only one working lever and will use it as inflation continues to creep up. I don't know if temp payrolls are as significant here as they are in the US - I suspect they are - but anyway if their movement is a harbinger of recessionary trend as it appears to be, my guess is interest rates could go as high as 7-8%...Reserve Bank rates that is. The rest is another story.
