Tuesday 5 February 2008

Australia Raise Interest Rates to 7%


Australia's central bank raised its benchmark interest rate by a quarter point to an 11-year high, saying a ``significant slowing in demand'' is needed to cool the fastest inflation since 1991.

The Problem what we have is that Asia regions is on the brink of overheating: China, Australia, India , and at the same time the U.S. and Europe is slowing down.

Decoupling or Not , that's the 672 856.951 Euros (1 million Dollar) question.
If Asian central bankers don't tighten interest rates or commit a policy mistake then the consequences will be harsh... they will then engineer bubble economies that will have a deep impact on the rest of the world...

1 comment:

Anonymous said...

``I always thought that decoupling was a myth,'' Paulson said. ``What happens in any country, that's a major country, impacts what happens in the rest of the world.''