Stutchbury has an excellent column today on the IMF sagas, which is well worth a read. On the question of rate hikes, he seems to put a line through June (I am not as convinced), opting for July/August:
"Most Australian economic data has been on the soft side since since the RBA's May 3 board meeting signalled it would soon start lifting interest rates again to keep inflation within its 2 per cent to 3 per cent target band. This and the renewed euro-zone financial instability means the RBA almost certainly will sit pat at its June 7 board meeting. But a rate hike is likely to be a live option at its July 5 and August 2 board meetings, which will straddle the June quarter consumer price inflation release. The RBA's quarterly monetary policy statement on August 5 will reveal whether it still forecasts underlying inflation bubbling up above target."
