Australian Interest Rates look like falling

Hi All,

Good news for those of you that have a Australian Mortgage or need to buy Pounds to Australian Dollars. The Reserve Bank of Australia has said that it would not wait for inflation to slow before lowering interest rates, sending the Aus Dollar close to seven-month lows.

RBA officials said they were confident annual core inflation, which was at a 17-year high of 4.4%, could be brought back to its 2%-3% target range as households cut back on spending in the face of high mortgage costs and fuel prices. "We cannot wait to see a fall in inflation before we start cutting rates because by then it would be too late," RBA deputy governor Ric Battellino told lawmakers.

So the Americans and the Australian's have decided that inflation isnt the problem - growth and the threat of a recession is - will the Europeans and the British follow suit.

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