The general expectation here in Australia is for the RBA to raise rates by 50 bps over the next two meetings, 25bps each time. The government’s stimulus spending should be curtailed now but this is unfortunately not happening. The stimulus package promised virtually every school in Australia some sort of new capital injection and it is now politically unpalatable for the government to go back on these promises. Therefore we have the ridiculous situation of the RBA raising rates and the government still spending lots of money. Australia is a very open economy, and much of this spending is destined to flow overseas. We also have the situation here where the RBA is warning of economic upside risks and the Treasury is warning of still existing downside risks. Whatever, as long as the commodities are still flowing freely to China, no-one seems to care to much- and it’s onward and upward for the little Aussie dollar.