Comparing the interest rates in 2014, with predictions for 2015.
The Reserve Bank monetary policy commentary has made it quite clear that interest rates are currently too low for the levels of inflation pressure that we're experiencing. In 2014, what they did was increase the interest rates by a total of 75 basis points, moving the prime lending rate from 8.5 to 9.25, and that was largely driven by inflation pressure. However, if the economy remains fragile, we are unlikely to see runway interest rate hikes. We expect to see that, in 2015, we might see at the back end of the year, some level of interest rate hikes in to 2016, but it's a wait and see game.