IMF warns Reserve Bank on inflation

Lateline Business - 10/07/2008: IMF warns Reserve Bank on inflation

The IMF would be better off concentrating their efforts on the American economy rather than ours. Inflation is just as bad there with interest rates only half ours.

Lorrimer

Well said mate, I guess they want us to keep our interest rates high so they have somewhere to park their money during the storm that's heading their way...

Cheers

Bill
It makes me angry when I read such reports because the popular press pick up on them
and then the majority of people believe them.
Why should the report be directed at Australia in any case. Some of the other Asian economies have far worse inflation problems than us.
As discussed elsewhere on the forum, if it were not for the huge spike in the price of oil and the credit crunch our economy would be in great shape.
Ok inflation was creeping up, but the RBA were on the case and it was under control until oil spiked.
I still reckon we could have done without the last two hikes, especially as banks have been raising rates independently.

Yes and there is more to come
I was watching the business channel on Foxtel today and they were saying that the big 4 have no option than to raise int. rates because of their exposure to the US.
They have to minimise potential losses or over 500Mil$

Cheers

This is really scary stuff for me.
I am on the edge...picking up free firewood and wild food already.
Bank repayments are only just made every month. Liquidity for my investments has dried up.
I heard that Freddie Mac and Fannie Mae are now in the spotlight in US, also another bank is looking very sus.

I am sure that I am one of many, many of us.
But I am not a happy blossom at this point

Thats true and it's unsure if they will be bailed out