29 January 2014 Inflation to keep interest rate in check

The latest inflation figures point to interest rates remaining at their current all-time low for the foreseeable future, analysts claim.

The Consumer Price Index rose 0.8% in the final quarter of last year, and overall inflationary pressures remain modest, said HIA senior economist Shane Garrett.

Underlying inflation (the Reserve Bank’s preferred measure of inflation) was up by 0.9% in the December 2013 quarter with the annual rate sitting almost exactly in the middle of the Reserve Bank’s target range.

“Today’s figures add further fuel to the notion that interest rates will remain at all-time lows for a considerable amount of time to come,” said Garrett.

“There is no justification to depart from current settings while inflation is under control and while economic growth continues to be below trend.”

Reproduced in full with permission: Your Investment Property Inflation to keep interest rate in check 23 January 2014

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