Anyone think a 0.5% drop is on the cards? I dont think they will but they should I reckon.
Interest Rates to Drop?
- Thread starter HomeBuyAU
- Start date
While 25 basis point rate cuts in both May and June now looks like a greater possibility and would no doubt be very welcome by most of us on this forum (re you can never second-guess a spoil sport like Token Funder), it's useful to be reminded that with the RBA there's always the real risk of none -
They've certainly been showing a strong tendency for saving their bullets this year, at any rate.
Didn't you trust me?
I was expecting a YoY figure of 2.4%, saw your 1.6%, and my eyes just popped out of my head! (Before seeing you'd written 'annualised').
But 2.15% YoY is a bewdiful number, isn't it?
Just giving room to the big 4 to move up (as they have) then "allow" them to drop in line so they look really generous...
http://www.abs.gov.au/ausstats/[email protected]/mf/6401.0
that's seriously low inflation for the quarter and last quarter was low too.
that's seriously low inflation for the quarter and last quarter was low too.
I am not into quoting public to the newspaper articles...But here is another view on monetary policy from Andy from the Fairfax papers!
That's right - again savers get shafted and the over-leveraged get a pat on the back. Interest rates should be increased each and every month until housing reaches fair value (~50% of current bubble prices) and then left alone.
And in response, Ranger......
So Andy I take it you want to see a lot of home owners lose large amounts of money so you or people you know can afford a house? There goes that old sense of entitlement again.
That's right - again savers get shafted and the over-leveraged get a pat on the back. Interest rates should be increased each and every month until housing reaches fair value (~50% of current bubble prices) and then left alone.
And in response, Ranger......
So Andy I take it you want to see a lot of home owners lose large amounts of money so you or people you know can afford a house? There goes that old sense of entitlement again.
I remain in the "saving bullets" camp, as unpopular as that is, and tend to agree with CJ.
However, because I can get some reasonable odds, I've gone for 50bp for May in the office pool in the expectation they only go once this calendar year.
Interesting thought. To maximise the shock and awe value to open some wallets, or other reasoning?
CJ's ammo hoarding is usually only outdone by Pascoe's, who rather caught me offguard then with this today -
Read more: http://www.smh.com.au/business/infl...for-comfort-20120424-1xifp.html#ixzz1sw7U0roO
While 50bps in May would be mighty welcome by businesses around the country, I think the RBA will be worried it might just scare the pants off consumers too, and so imagine they'll more likely do 2 x 25bps.
Well I'm known as an optimistic person and I doubt rates will drop at all this year, in fact we might see a rise soon
Yeah...I disagree with that. They can't raise rates in a situation like this. No way.
or 3 or 4 or....
Seems a lot in the market think so. Until Europe gets sorted though pretty much anything could happen though, I think. Making economic or interest rate predictions further out than a month ahead these days would appear to be more hoping than forecasting if you ask me. Very strange times by any measure!
Well I'm known as an optimistic person and I doubt rates will drop at all this year, in fact we might see a rise soon
I fixed too but I would like rates to go down especially for business. Personally I would need three (3) 25bps reductions in my previous variable rate to get to my fixed rate however more than happy of variable rates eventually fall greater if needed.
But I think 2 x 25 bps is what we will definitely get. Anything beyong that at this stage, is speculative IMO.
I'm no Eco expert, but I'd there was say one or two rate drops,
Would I be correct in assuming that in todays market conditions, that in a environment of uncertainty, one rate drop will bring some degree of stability hence possibly stopping and areas that are dropping to stable, while a second rate cut may be the bottom of the down turn with greater investor confidence, hence could be the first steps to a consistent average annual growth?
Would I be correct in assuming that in todays market conditions, that in a environment of uncertainty, one rate drop will bring some degree of stability hence possibly stopping and areas that are dropping to stable, while a second rate cut may be the bottom of the down turn with greater investor confidence, hence could be the first steps to a consistent average annual growth?
Off to relieve the Treasury guys of their hard earned.
Nicely called there, old chap. Certainly hoping the RBA decides to disagree on the second part of your forecast though, and goes again (well) before year's end.
