MELBOURNE. Australia inflationary pressures in the second quarter increased to 0.9%. This figure exceeds the forecast of economists surveyed once only at the level of 0.7%. This condition allay concerns that the Reserve Bank of Australia (RBA) will cut interest rates later this year at least. Last weekend, an analyst at Westpac predicts the RBA will start to cut interest rates later this year at least.
But now, with rising inflation pressures outside estimates, many analysts are predicting the RBA will raise interest rates in the trial this September. This contrasts with a projected interbank futures market at the end of last week forecast the RBA will cut interest rates later this year at least with respect to increasing concern conditions of the EU and the U.S. debt.
Australian finance minister Wayne Swan confirmed that it will make efforts to intervene to restrain the continued strengthening of the dollar Australian dollar reached its highest level in history.
Swan believes that the market has its own mechanism to determine the current level of aussie dollar. Swan's comments are a response to employers who are members of the Australian Industry Group that the rise in the Australian dollar exchange rate of late has a negative impact on tourism and manufacturing business sectors.
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