Bill Evans Interest Quotations

People are complacent about interest rates now. There is a risk that the emerging strength of the data will result in more intense media coverage of the risk to interest rates.

People are complacent about interest rates now. The risk of the emerging strength in this data is that the media coverage of interest rate risk will start to intensify again and that will start to worry people.

Retailers will be disturbed to see that. Our view is that interest rates will remain steady for the rest of the year and most of 2006.

Confidence is steadily improving from the lows of the second half of 2005. Relatively stable petrol prices and continuing good news on the interest rate front have settled consumers.

Confidence is steadily improving from the lows of the second half of 2005, when sharp rises in petrol prices and interest rates uncertainty hampered consumers.

After a particularly volatile year in 2005 for consumer sentiment, we may be entering steadier times in 2006. However, given households' high levels of debt and sensitivity to interest rates, this calm would be dramatically disturbed if interest rate concerns returned.

Despite low unemployment, wage growth remains contained. With job gains slowing, the risks from wage inflation appear to be receding. Interest rates will remain on hold in 2006.

A recovery of growth to around trend in the first half of 2006 will not threaten interest rates in either direction.

We look to 2007 for the next move when the current global move for higher interest rates is likely to be reversed and Australia will play its part.

We expect steady interest rates for the remainder of 2005 and most of 2006.