RBA Meeting passes with hardly a murmur.
Tuesday’s RBA Board Meeting came and went as expected with no change to official rates. In fact the expectation of no change was so great that on the basis of Wednesday’s media coverage it was difficult to know that there had even been an RBA meeting.
Across the Pacific meanwhile, US bond rates continued their rise, with expectations of a further tightening at the Federal Reserve’s meeting later this month.
The actual tightening may come as somewhat of an anti climax as 30 year mortgage rates in the US have risen to over 8% recently for the first time in seven years. This will, if it hasn't already, put the brakes on the US housing market in no uncertain terms.
That in itself will be good for inflationary pressures, and may also be enough to convince Alan Greenspan that maybe just the threat of a rate rise is sufficient to have the desired effect on the market.