analyst upgrades, page-5

More good news for VBA from the RBA. The statement on monetary policy released today indicates that they expect aussie growth next year will remain around trend and the global economy has resumed growing. What have they done - increased rates by 25bps to 3.75%. My take on the statement and most importantly is that we can expect further rate hikes (25bps my guess) in the firsts two meetings next year. This means the interest rate differential between AUS and the US should continue to widen and therefore place upward pressure on the AUD. As we all know VBA is the biggest benefactor of a higher AUD in the 200 when it comes to positive impact on earnings. Assuming we don't have anymore events like Dubai (flight away from risky assets) then I can't see why our dollar will not head north over the next 6 months. Also, in the AFR it mentioned that low cost carriers such as pacific blue improved their combined market share by 7% from 08 to 18%.

This is all positive for VBA and should continue to drive their earnings, profits and share price higher.