Cheap products from China and a very competitive pricing environment is helping keep underlying inflation in check. Interest rates are on hold for the time being.
The housing market remains in the doldrums. With the housing market still slowing and households under pressure from high petrol prices, interest rates will remain on hold.
Rising fuel prices will keep a lid on consumer spending for some time, slowing economic growth. The central bank will keep interest rates on hold.
Returns aren't going to be as tragic as some are portraying because the mining stocks are still looking fine. The resources stocks rely more on global growth so, to a degree, they're insulated from many of the woes afflicting our own economy.
It's consistent with an economy that's starting to pull back up in Korea, with a bit of consumer demand starting to come through again. I would expect the unemployment rate will start to decline and will fall further.
You need to put effort into determining the return, which is largely linked to the risk of the borrower.
The China growth story, which has been driving commodity prices, remains as strong as ever.
The situation is far healthier. The risk of another Asian crisis is very low.
We need other areas to fill the hole left by slowing consumer spending. Luckily mining investment and exports are increasing, which will help plug the gap.
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