The evidence continues to pile up that the economy is nowsteaming ahead – and signs are emerging that that’s startingto eat into spare capacity. While that supports the view thatinterest rate hikes will be needed over the course of thisyear, it doesn’t force the Reserve Bank’s hand to start movingas soon as its January meeting, as financial markets arespeculating. Barring a major surprise on this week’s consumerprice data, we continue to expect the first hike in March.
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