Interest rates, and growth, on hold

The direction of the economy will become clearer this week, as the size of the national slowdown is quantified and interest rates are left on hold.
The Reserve Bank meeting tomorrow is likely to be a short-lived affair, with the futures market pricing the chance of a move higher in official interest rates at less than 5%.
The prospect has emerged that the RBA's tightening cycle has ended, after 12 rises in six years and evidence the economy has hit a speed bump.
The economic data is pointing clearly at the moment to a marked slowdown of the economy being under way. It's a question, however, as to whether the cooling of the economy has gone too far.
The gross domestic product numbers for the first quarter, published on Wednesday, will show just a mild expansion of economic growth although there is some thinking among economists that a contraction could have occurred.
The majority of market economists are likely to adjust their calls today after retail sales and inventory numbers are released.

Flats 4 Midgets wish you luck!