Tuesday, February 16, 2010

Australia to Gradually Hike Rates, Eyes Europe, US Risk

http://www.cnbc.com/id/35413319

"The RBA has clearly signaled further rate rises if economic conditions evolve broadly as expected," said Andrew Hanlan, a senior economist at Westpac.

"But it's keeping its options open on timing -- entirely understandable given global uncertainties."

Investors were less certain, having been badly burned by the RBA's decision not to hike at the February meeting. Markets were implying around a one-in-three chance of a move on March 2, compared to one-in-two last week after the jobs data.

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