Michael Every Rapidly Quotations

The odds of a rate increase on Oct. 27 have shortened. The Reserve Bank is extremely worried over whether the economy will slow rapidly enough ahead to cap obvious inflation pressures. It looks increasingly like it will not.

Importantly, we believe that if oil prices drop back from present levels then CPI inflation may already have peaked year on year and should be on the way down over the rest of 2006 - potentially rapidly if oil reverses significantly.