Fed: Wage surge signals new interest rate rise

AAP General News (Australia)
04-28-2000
Fed: Wage surge signals new interest rate rise

Economists will be watching today's release of the latest inflation figures since another
bad result could seal a further interest rate rise.

Market experts are forecasting inflation of up to 1 per cent in the December quarter,
lifting the annual rate to close to 3 per cent.

Interest rates could rise next week for the fourth time in six months.

Economists say the catalysts for another increase are wage rises and inflation likely
to hit a four-year high.

Wages rose 1.4 per cent in the March quarter - double the rate expected by many.

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KEYWORD: ECONOMY (CANBERRA)

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