Shane Oliver Commodity Quotations

Some have argued the fall in the Australian dollar at a time when commodity prices are still strong is telling us global growth is about to collapse. However, there are few indicators of any impending collapse in global growth or commodity prices. In fact, global growth seems to be strengthening thanks to stronger growth in Europe and Japan.

The bank is concerned about inflationary pressure in the economy given the strength in the global economy and higher commodity prices. It will be a knock on the head for both retail and housing.

The China growth story, which has been driving commodity prices, remains as strong as ever,