Reserve Bank Decision - Hold at 4.25%!!!!

Looks like my model isn't too bad after all! Still one swallow does not make a summer and all that.

Highlights from the Reserve Bank seem to indicate

1. US and China going ok
2. Europe has improved, but still on death watch
3. Australian GDP growth close to trend.
4. Commodity prices still high (but my model indicates this is negatively correlated to interest rates..might need to investigate this. Might be some multicollinearity in my model)
5. Inflation not a problem
6. Unemployment flat
7. Credit Growth slowly increasing, but retail rates close to long run average
8. Housing prices stable
9. Terms of trade down, but Australian dollar still high.

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