interest rates looklike they will rise

[eeew]

hmm....another view saying rate hike seems likely

'...Investors now tip a one-in-three chance that the RBA will raise its key cash rate next month, up from a one-in-seven chance yesterday. And the market now has a 70 per cent chance of a hike priced in by August, up from 48 per cent a day earlier. ...'

http://www.businessday.com.au/business/hawkish-rba-warns-of-rate-rise-20110506-1eb3n.html

...so ill do one of two things:
1. Buy now before rates increase
2. Forget it, continue to rent and put my $ elsewhere.

Ofcourse i think option 1 is the better thing to do, as i still believe long/med term real estate will outperform most other investments in that timeframe. Id like to get in now, and fix for 1-2 yrs.

oh,..and could someone tell the RBA that not everyone works in mining and thus does not have $ coming out the their a$$.

 

[Ausprop]

oh,..and could someone tell the RBA that not everyone works in mining and thus does not have $ coming out the their a$$.

it's a signal from the market, telling you that your time is more valued in mining than elsewhere. if you refuse to comply you turn down the dollars on offer

 

[Rolf Latham]

it's a signal from the market, telling you that your time is more valued in mining than elsewhere. if you refuse to comply you turn down the dollars on offer

simple but true.

ta
rolf

 

[gm12]

what if Q1 GDP is -ve?

hmm....another view saying rate hike seems likely

I was listening to Dr John Hewson (formal leader of federal opposition and chairman of GSA Insurance Broker) on Switzer today and he reckons that non-resource part of the economy is much flatter than what people are realising. He said “Reserve bank conceded the possibility that the economy... declined in the first qtr” adding on that he explained if we take a hypothetical scenario and imagine that the economy will decline again in qtr 2, this scenario will mean is that Aus hasn’t avoided the recession but just delayed it by all that govt stimulus .

He reckons RBA is “moving too far too fast in putting up interest rates” and this is all about to “turn on its head”. Inflammatory pressure is coming from rising cost of essentials such as food prices, electricity and petrol which will not be affected by interest rates.
He didn’t say that RBA will not increase interest rates but instead alluded that RBA hasn’t learnt much from its mistakes in late 80s/early 90s, and the debate is about to turn around as growth for Q1, Q2 and possibly beyond will be flat or negative.

Anyone knows when will official Q1 GDP result will be out?

 

[IFBB]

When they released the figures, saying the economy was hovering outside the RBAs comfort zone (think they said 3.3%), i didnt know how, apart from mining this could be happening.

I work in fruit & veg wholesale, and numbers are definitely down on the past year, with some shop owners saying its the worst they seen it in years. Also have some family owning stores in retail, and again, very quiet.

With the increase in cost of living, with all basic essentials rising much faster than wages, the RBA really needs to not rush the decision, as i think it could be disasterous for the country