I agree with some earlier threads that because the size of the credit held in public hands it will only take a small rise in rates to have a big impact on the public purse.
Therefore the RBA doesn't need large increases in rates to reign in spending.
Don't forget also that we already have higher rates than most of the world.
Don't higher rates mean money flows in from OS, aussie dollar goes up, this hurts our exporters.
At the end of the day, if anyone really could predict rates, they would be mega rich.
But even the smart ones can't.
Just try to cover this risk, like a lot of other risks involved with investing.
Garry
Therefore the RBA doesn't need large increases in rates to reign in spending.
Don't forget also that we already have higher rates than most of the world.
Don't higher rates mean money flows in from OS, aussie dollar goes up, this hurts our exporters.
At the end of the day, if anyone really could predict rates, they would be mega rich.
But even the smart ones can't.
Just try to cover this risk, like a lot of other risks involved with investing.
Garry