Commodity prices prompted RBA rate rise

The likelihood of rampant commodity price growth over the course of 2008 led the Reserve Bank of Australia to hike rates by a quarter point earlier this month, minutes of the March monetary policy meeting reveal.

"Growth in the world economy was likely to be below trend this year and next, but at the same time very strong rises in key commodity prices would lift the terms of trade noticeably, thereby providing an additional boost to domestic incomes," the minutes said. "If anything, commodity

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