Australia’s central bank announced a policy of 20 minutes of fear that rising inflation is the Australian central bank to raise interest rates this month 6, a key factor in the decision. In addition, the content of this summary suggests, Australia central bank may in the coming months and throughout 2010 to continue to raise interest rates as the benchmark overnight bank lending target rate.

Australian central bank policy committee on Oct. 6 raised its benchmark interest rate by 0.25 percentage point to 3.25%. Australian central bank to become the Group of Twenty (G20) in the global financial crisis first expansionary monetary policy tightening the central bank.

Australian central bank announced on the 20th day of the policy from 6 minutes to give the world to Australia to raise interest rates because the central bank has direct knowledge. Minutes of that, continue to keep interest rates low in the past half a century too “unwise.”

Australian central bank that could threaten the central bank to maintain low interest rates the medium-term inflation rate to remain at 2-3 percent policy target.

Australian central bank said in minutes of the latest data showed the core inflation rate is still higher than the target level, although the core inflation rate next year expected to fall, it is expected that the low level was still significantly higher than previously forecast. The central bank worried that by 2010 the inflation rate may rise again.

The report led to the publication of the contents of grave concern the market, many analysts expect the Australian central bank will raise interest rates in the future.

Morgan Chase Bank chief economist told Bloomberg News reporter Stephen Walt, the minutes used in the “unwise” is “a slap in the face of our fight,” “If the interest rate of 3% two weeks ago, still regarded as ‘unwise’ It is now 3.25%. ”

Walter had expected the Australian central bank’s policy meeting next month on the 3rd will not continue to raise interest rates, but the minutes changed his mind, began to agree with most economists expected, the Australian central bank will continue to raise interest rates next month, 0.25 percentage points to 3.50%.

Bloomberg According to the Sydney Futures Exchange, interbank interest rate futures trend data analysis, most investors are convinced the RBA will next benchmark interest rates at least 0.25 percentage points, up 0.5 percent chance of only 20%.

Australia’s largest retailer Woolworth CEO Cosme is expected in an interview that if the policy makers to recognize the “overheating” or “inflation out of control”, raised the benchmark rate will be more than 5% .

Australia’s first interest rate increase reflects the central bank policy-makers of the extremely loose monetary policy “side effects” of concern. Australian central bank discussed the “premature” to tighten the money supply risk, but more emphasis on the threat of long-term low interest rates condoned.

Minutes of that “extremely loose monetary policy may lead to other imbalances in the economy and ultimately harm economic growth.”

According to Australian central bank expects Australia’s economic growth will fall out of a moderate posture, and will return in 2010 the average growth rate of 3%.

Australia in the first half of gross domestic product (GDP) growth of 1%. Latest figures show consumer confidence index in October over two years of high points in September from the August unemployment rate of 5.8% “unexpected” down to 5.7%. Australian central bank governor Glenn Stevens said last week, had to deal with the economic crisis, national policy makers sharply cut interest rates quickly, but after the crisis, “afraid to tighten the stimulus in time.”

Bloomberg reported that the Australian central bank announced interest rate increase since the beginning of the Australian dollar as the currency in the performance of 16 major currencies most eye-catching. 20 minutes after the announcement, the Sydney Australian dollar foreign exchange market from earlier in the day up 92.76 cents to 93.11 cents. As of 20 October against the U.S. dollar Australian dollar has risen 5.2%.

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