The US Fed again raised interest
rates by 0.25% as expected. Hardly surprising given that US growth is strong
with low inflation.

Domestically, it doesn’t get much
better than this. The Goldilocks economy – not too hot and not too cold – is
bubbling along. Housing seems to have stabilised, except in Sydney where prices are
still falling and in the resource states where they are still rising. Only
Melbourne is
perfect, with a net zero for the past 18 months.

Tim Colebatch reports: “The economy’s prospects for the year ahead have
taken two blows. In New York, crude oil futures soared yet again to a
record US$64.25 a barrel, while in Melbourne, National Australia Bank
reported that business conditions and confidence had fallen.

NAB reported that the growing
optimism in May and June was reversed in its July survey, led by industries
driven by domestic spending: retailing, wholesale, transport and financial,
business and property services.”

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