Where exactly is the middle of 2010?
In Markets Outlook it says April certainly isn't the middle of 2010 so there is zero reason to assume the Reserve Bank might start its tightening this week.
"The point of interest is whether the Reserve Bank will point directly to June or July as its start point, or even, as an outside chance, stretch the meaning of the word middle and intimate a September kick off."
Westpac Weekly Commentary believes the Reserve Bank is currently in a sweet spot having held to its commitment to keep interest rates low until mid-2010, and says it is now seeing sufficient evidence of a recovery to carry out its plan for ‘normalisation.'
"The plan, as laid out in the March Monetary Policy Statement (MPS), is for an extended tightening cycle that could see the OCR rise by 3% or more over the next few years.
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