The recent run of strong economic data has solidified thecase for higher interest rates this year; now it’s the tacticalconsiderations around how to kick off that process thatare coming to the fore. Last week’s higher than expectedinflation figures have raised the odds that the ReserveBank decides to act immediately. But we think that onbalance the March Monetary Policy Statement would be thepreferred option, in terms of explaining the decision to raiseinterest rates and guiding expectations of future moves.
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