Rates hinge on oil

INTEREST rates are firmly on the agenda for business around the country ahead of the Reserve Bank’s board meeting next week, after higher price data released this week confirmed the effects of a higher oil price on the Australian economy in the past three months. The Australian Bureau of Statistics’ Producer Price Index showed a 3.4 per cent rise in the September quarter as figures revealed the Import Price Index increased 2.6 per cent in the period. The RBA will make known whether it thinks the higher oil price will lead to longer lasting inflation when it makes its quarterly statement on monetary policy next month, following its meeting to decide whether or not to raise rates next week.