Here's an update: the outcome of the Interest Rate decision will be released this afternoon at 2.30pm Sydney time. It's the first time that the RBA is releasing the Outcome of their board meeting on the same day of the RBA board meeting. If they raise it - interest rates will be at an 11 year high.

Also there has been a lot of political talk from Prime Minister Kevin Rudd trying to initiate fiscal policy (the federal budget) measures to control the economic overheating and ease inflation pressure along side monetary policy (interest rates from the RBA). "Our predecessors were projecting a budget surplus for 08-09 of about 1.0 (to) 1.1 per cent of GDP." said Rudd "We've said we can do a lot better than that. We're ... aiming for 1.5."

On Monday, Ross Gittins, the Sydney Morning Herald Columnist, he noted in his column that:

My guess is that, to produce a change capable of being taken seriously by the Reserve, Mr Swan will need to budget for a surplus of at least 2.3 per cent. That is, one expected to be at least $10 billion higher than last year's."