By Robert Balthazaar

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G. Debelle and D. Fabbro (2005), “Australia’s Foreign Currency Exposure and Hedging Practices”, Reserve Bank of Australia Bulletin, RBA, Sydney, December. 46 OECD ECONOMIC SURVEYS: AUSTRALIA – ISBN 92-64-02635-5 – © OECD 2006 1. THE SHORT-TERM CHALLENGE: RIDING THE COMMODITIES ROLLERCOASTER Connolly, E. and M. Kohler (2004), “News and Interest Rate Expectations: A Study of Six Central Banks”, in Kent, C. and S. pdf. Edey, M. and A. Stone (2004), “A Perspective on Monetary Policy and Transparency”, in Kent, C.

Kohler (2004), “News and Interest Rate Expectations: A Study of Six Central Banks”, in Kent, C. and S. pdf. Edey, M. and A. Stone (2004), “A Perspective on Monetary Policy and Transparency”, in Kent, C. and S. pdf. Eijffinger, S. and P. pdf. Ford, B. ContentID=987. Girouard, N. and C. André (2005), “Measuring Cyclically-adjusted Budget Balances for OECD Countries”, Economics Department Working Papers, No. org/eco/working_papers. , J. Hawkins and L. pdf. Gruen, D. pdf. Gruen, D. pdf. Hendy, P. and R.

2). Recent indicators of consumer activity suggest consumption has strengthened in the first half of 2006. However the rate rise should slow the recent pick-up in household credit and the saving ratio should recover gradually. Business investment will be underpinned by tight capacity in commodity sectors and strong profitability more generally. The additional capacity should allow higher resource-based exports and, provided there is no renewed appreciation of the exchange rate, there should be a recovery in non-resource exports.

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