Last Week

The most important development last week was Glenn Steven's speech were he gave the clear impression that there won't be any more easings. One of the key reasons for this is the confidence and optimism - very powerful forces - evident in the economy. The NAB Qtly Business Survey backed this up during the week where business confidence moved closer to negative.

As a result yields have moved up during the week with the yield curve steepening as a move to monetary policy rate tightening is factored in for next year. Newspaper claims of rate rises by Christmas are just sensational in my opinion though as we still have some way to go. Despite the optimism the economy is still in a delicate state with increased unemployment and business closures likely during the year.