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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1245 |
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Throughout 2007 domestic demand grew by 5.7%, a direct result of broad based strength in consumer spending and increases in private and public capital expenditure. A 9.5% increase in bank mortgage rates and charges and an 8.7% rise in the price of fuel have forced the inflation rate up by 1.5% to 4.5% at the end of the June quarter, significantly above the Reserve Banks target range of 2 – 3%...
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This underlying cash surplus is a reaction to the inflationary pressures currently placed on the Australian economy and is used to tighten the overall stance of fiscal policy. The large surplus created by the government is designed to improve the government’s net worth position over time while also reducing the inflationary pressures placed on the Australian economy...
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