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The days of low interest rates are over

Inflation is a long, not a short, game

Leading independent economic forecaster and industry analyst, BIS Shrapnel, forecasts inflation will remain above three per cent for the rest of 2008, through 2009 and into 2010. However, according to BIS Shrapnel the Reserve Bank of Australia’s (RBA) tightening of the cash rate should be sufficient to bring it back to three per cent by 2010, BIS Shrapnel believes the days of low interest rates are over and the RBA will continue to struggle to control inflation for the next decade.