Interests rates Stay--Good news for labor stooges....

Discussion in 'General Discussion Forum' started by byso, Apr 6, 2005.



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  1. byso

    By:bysoApr 6, 2005
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    THE Reserve Bank today left interest rates on hold at 5.50 per cent in the face of growing questions over the strength of the economy.

    Economists had expected the bank to follow through with another 0.25 percentage point rate increase, following its March increase.
    But key economic indicators are now suggesting the economy is slowing and the high price of oil has hit the spending power of consumers.

    There had been speculation the Reserve would hold a rates hike this month, waiting on labour force figures due tomorrow to get a clearer picture of the economy.

    The central bank highlighted concerns about a wages-led breakout in inflation as one of the reasons it moved on rates last month.

    John Howard had earlier warned the bank to take heed of the crippling cost of spiralling petrol prices, amid high-level concerns that rising interest rates were damaging his Government's political standing.

    The Prime Minister conceded interest rates could not stay on hold forever but said the rise in petrol prices - with the price of crude oil hitting a new high in New York yesterday of US$58.28 a barrel - was hurting the hip pockets of most Australians.

    "I am very aware of how much the higher price of petrol is costing people," he told Sydney radio before the Reserve Bank's monthly board meeting.

    "That is something that is having a direct impact on consumer demand, because if you have to spend all those more dollars a week on petrol you don't have it to spend on something else."

    His blunt warning came as Assistant Treasurer Mal Brough suggested last month's rate rise had already caused a fall in consumer spending, reducing the need for further tightening of monetary policy.

    "The general feedback that I've received, anecdotally, is that consumer demand in the retail sector has come off its peak," Mr Brough told The Australian yesterday.

    The Howard Government is concerned over the recent increase in petrol prices to record levels, with regional MPs in particular raising concerns about the effect on voter sentiment.

    The debate over rates came as car sales figures showed strong growth in demand, up 4.5 per cent, for new cars in the first quarter of the year.

    And in a further sign of solid consumer spending, new figures revealed yesterday revenue from GST collections were on track to hit record levels.

    While receiving good economic news with the trade deficit falling slightly to $2.2 billion in February, senior Coalition figures are still worried the slowing economy and rising mortgage rates are raising doubts among voters of the Government's economic credibility.

    The latest Newspoll, published in The Australian yesterday, showed a turnaround in voter support, with Labor leading the Coalition on a two-party-preferred basis for the first time since the October 9 election. :clap: :clap: :lol: :lol: !BDH!

    Labor Treasury spokesman Wayne Swan said yesterday he had no doubt the upward pressure on rates was a factor in the Newspoll swing.

    While Mr Howard insists the economy remains "fundamentally strong", he said there was no doubt it was slowing.

    An analysis by Macquarie Bank shows the Government is right to be concerned about petrol prices slowing consumer demand, with a 10c-a-litre rise having about the same effect on household budgets as a 0.25 point rate rise.

    But Macquarie also says the higher petrol prices will flow through to higher prices overall, which is the Reserve's biggest worry.

    The bank justified its decision to raise interest rates last month by saying there was a risk its forecast of inflation rising to 3 per cent by the end of next year might prove too optimistic.

    Macquarie Bank calculates a rise in the petrol price from $1 a litre to $1.10 would add 0.5 per cent to the inflation rate.

    with AAP
     
  2. byso

    By:bysoApr 6, 2005
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    "The latest Newspoll, published in The Australian yesterday, showed a turnaround in voter support, with Labor leading the Coalition on a two-party-preferred basis"

    Looks like we've heard that before.....Just ask goose Latham....haha
     
  3. fLIP

    By:fLIPApr 6, 2005
    UFO Hunter

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    First 2 paragraphs: The economy is weakening.

    Lie number 2, "Who will keep australias economy strong?"
    <span class='smallblacktext'>[ Edited Wed Apr 06 2005, 02:46PM ]</span>
     
  4. c_eagle

    By:c_eagleApr 6, 2005
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    It wasn't a lie, it was a statement based on experience. E.g. the last 9 years vs Keating's term.
     
  5. Fro

    By:FroApr 6, 2005
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    and how can a question be a lie, it asks for an answer doesnt give one.

    if it said " We will keep Australias economy strong" then you may have had a point
     
  6. Volley

    By:VolleyApr 6, 2005
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    Rhetorical Question.
     
  7. Fluffy

    By:FluffyApr 6, 2005
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    brainwashing then

    and its funny how from day 1 the libs fixed our economy - or was it keatings efforts flowing through. hmmmmm i wonder. cmon people the economy takes time, thats why all the lib stuff is starting to go pear shaped.
     
  8. c_eagle

    By:c_eagleApr 6, 2005
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    So, the Recession we had to have was actually Frasier's fault?
     
  9. CliffyIsGod

    By:CliffyIsGodApr 6, 2005
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    Ah, great to have c_eagle here!
     
  10. Hopium

    By:HopiumApr 6, 2005
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    How many times do I need to explain this??? The strong economy of the past few years was laid in place by the Keating government!!!!! It is NOW that the lib stuff is coming through. It mioght be a slow decline... but a decline nonetheless.
    Development of the economy is not realised within a moderate term of government ok??
    So the crap the libs were feeding about the high interest rates under labor were because of their own reforms. The low stuff now... hey, mostly labor reforms.
    The recession was indeed Frasier... because of what he did to Whitlam... the destabilisation fo the Australian Government and the changes he made to government acquisition of assets.
    So there.

    And the libs have the WORST environmental record next to the USA.

    NOT HAPPY

    Anyways, who cares about petrol? It won't matter when the air's unbreathable... or the climate goes haywire...
    <span class='smallblacktext'>[ Edited Wed Apr 06 2005, 06:54PM ]</span>
     
  11. byso

    By:bysoApr 6, 2005
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    Hi Hopium!

    Over to you c_eagle.......
     
  12. Canteen Worker

    By:Canteen WorkerApr 6, 2005
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    Fraser people. Malcolm was a fool and lost his pants in Memphis -but he wasn't a pretend American comedian.

    Fact: Hawke/Keating made changes that Fraser was scared to make - mainly due to pressures from his own party. Deregulation and floating of the dollar was done by Labor. Howard has lived off the back for many years of the Keating reforms (he was a much better treasurer than PM) Howard has also been mighty lucky in that the worldwide economic cycle has helped him along with his lies on the children overboard and scare campaign on Gareth Evans and interest rates at elections. He will one day be exposed for the fraud he has always been.

    Q: Who was Fraser's failed and discredited treasurer? (Can't work out how he has come to be called honest as he is the master of spin, changing the topic and deception!!!!
     
  13. Garts

    By:GartsApr 6, 2005
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    *yawn* time for bed!!!
     
  14. Hopium

    By:HopiumApr 7, 2005
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    Well done CW... That is so very, very, very true. And sorry about my spelling... Frasier is better than Fraser.

    Fraser now even admits he did nothing... except try to dismantle Whitlam's ideas. The Libs have never liked medicare. Well, his thing is, don't do anything and people will love you.

    Funny that... sounds like someone we know??

    My lucky parents though... they had free uni.

    The pull of Howard has been the Lack-of-Personality cult.

    But he, and his kids are little, whinging, lying s**ts. And that's putting it nicely.
    <span class='smallblacktext'>[ Edited Thu Apr 07 2005, 08:15AM ]</span>
     
  15. Dan

    By:DanApr 7, 2005
    Kim Jong Dan
    Staff Member Administrator 2018 Tipping Competitor

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    come on guys, I am already tired enough, are you trying to make me fall asleep at my desk?
     
  16. Fluffy

    By:FluffyApr 7, 2005
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    poor danny

    :boho: :boho: :boho: :boho: :boho:
     
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