Fed:Risk of rate rise grows as consumers go on shopping spree

AAP General News (Australia)
04-02-2007
Fed:Risk of rate rise grows as consumers go on shopping spree

The chance of another interest rate has gained ground .. with two sets of government
figures showing last year's rate rises have done little to rein in spending.

That risks refuelling inflation pressures.

Bureau of Statistics figures show retail trade rose by a seasonally adjusted 0.9 per
cent in February to nearly 19 billion dollars.

Economists expected retail trade to rise 0.4 per cent.

At the same time .. building approvals surged by 10.6 per cent .. when economists expected
a rise of just 1.0 per cent.

The Reserve Bank holds its monthly board meeting tomorrow and will announce its decision
on Wednesday morning.

Before the data only a minority of economists expected another rate rise this week
.. given the surprising strength of the economy since the start of the year.

AAP RTV cb/sb/bart

KEYWORD: ECONOMY (CANBERRA)

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