The Monetary Policy Committee meets later this week to decide whether another hike in interest rate is needed, or if the fourteen that have taken place in this cycle have slowed demand sufficiently for inflation to follow.

Over the past two weeks there have been a series of mixed signals, none more so than the employment report for August.

Wage inflation has now exceeded consumer price increases, which points to a wage/price spiral continuing, but the unemployment rate is starting to increase which is a clear indication that interest rates are now at a level where they are restricting demand.

While it is certain that the five permanent members will vote in unison, there have been some interesting comments from the independent group recently.

Swati Dhingra is of the opinion that not only is a hike not justified at this time, but the cycle would have been halted before now.

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