Retail Sales

The impact of rising rates are finally having a delayed impact. Retail sales fell 0.7 per cent in December alone, but rose 1.1 per cent for the December quarter. Economists had forecasts for growth of 0.2 per cent and 1.1 per cent, respectively. There's some strength in the construction sector according to figures just released.

Globally worries continue about Greece and Portugal and some tricky debt as well as US growth concerns. It's caused the stockmarket here to get a bit of a hammering and will keep our rates subdued. It might have been a shrewd call by the RBA to pause.