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**From:**Ctrader .

This is an excerpt from a 'Lot109' newsletter.

As a 'rule of thumb' the novice can measure interest rates with the inflation rate. For the past thirty years Australian home loan mortgage interest rates in the standard principal and interest variable format have been easily measured as being double the current inflation rate e.g. if inflation is currently running at 3% expect the mortgage rate to borrowers to be 6%. If the inflation rate rises to 5% then expect the mortgage rate to borrowers to be 10%.

I can only see a relevance if the inflation rate has a high corelation as stated and is a leading indicator. Does anyone know of any graphs plotting both the inflation and interest rates to verify this.

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