Sunfish and Ausprop are correct.
I leave it up to you guys to figure it out.
I leave it up to you guys to figure it out.
Interest Rates to Drop?
- Thread starter HomeBuyAU
- Start date
You are not an omnipotent arbiter and as such can't make a definitive judgment.
My "socialistic" views were in reference to this original post from Ausprop:
"too much hurt in the economy to keep rates steady. I don't think anyone expected the resources boom to crowd out the other industries to the extent it has. The RBA is cognitive of this but doesn't appreciate it on a street level. It seems it doesn't really matter what industry you have when you have a nearly full employment educated populice. The RBA should back off a little until the boom grips a bit better... but I acknowledge that they can;t jump around all over the place. If anything we should take confidence in this action - its seems they are still bracing for the full effects of the resources investment. I just hope the rust belt can recover once the dust settles. Even financials as much as I despise the leaches! Yes it is a major structural shift but we wanted resources as a bolt on not an alternative"
I just find it ironic - its recognised that the resources boom is "crowding out" other industries but that interest rate movements are a blunt tool and not sophisticated enough to provide for a two speed economy.
The MRRT attempts to address this inbalance. If nothing is done, through no fault of their own, INDIVIDUALS who would otherwise be ACHIEVING find themselves in the wrong geographical location or industry.
Don't forget, society is a collection of individuals.
25 basis point cut in RBA rates by May (after they assess the march quarter cpi due out in april).
Thats my new prediction.
Thats my new prediction.
And will the banks pass it on??
US QE4ever in June/July.
EU May/June
EU May/June
If the absolute subtlest hint of QE from Bernanke can send Gold +$30, Silver +60c like it did the other night I wonder what will happen when we actually do get QE...
There have been financial commentators over the last week talking about the RBA cutting rates .25 in May and another .25 before the end of the year.
As always this in the end is only crystal ball gazing but what are the chances of fixed rates also going down esp when they have been going up lately while variable has remained static?
As always this in the end is only crystal ball gazing but what are the chances of fixed rates also going down esp when they have been going up lately while variable has remained static?
Couple of contacts at two separate banks have indicated to me that, if there are no blowups in Europe, fixed rates are steady at today's levels or slightly increasing over the course of the year.
My last discussion with MB about rates was this;
He said that the cost to the Banks for them to borrow money from OS to then on-lend to us is going UP at the moment.
Therefore, he couldn't see any rate drops in the near future - even if the RBA drops the cash rate. In fact; the banks may still put up their rates despite what the RBA does.
But, if the banks do consider a cut, then it will come at the expense of less money available to lend out - less new loans being written, and criteria being very tough to get one.
interesting next few months.
My feeling is no more drops this year.
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They'll increase it by 50
From an IP viewpoint, rate are already low.
From a confidence viewpoint, it does matter.
regards
Peter 14.7
From a confidence viewpoint, it does matter.
regards
Peter 14.7
Annualized inflation comes in at 1.6%. So 25 basis point reduction is assured for May and possibly even June. Let's see how the banks respond now...
1.6%? Could you offer your source, Buzz.l.y?
they may show us some of it, but they really don't care any more and have no need to respond to anything. the govt has already told them that their profitability is the main priority
Quote -
The core inflation measure, which is watched closely by the Reserve Bank in setting policy, was 2.15 per cent in the year to March, down from 2.6 per cent.
Read more: http://www.smh.com.au/business/rate...arely-budge-20120424-1xibl.html#ixzz1sv6bfM52
The core inflation measure, which is watched closely by the Reserve Bank in setting policy, was 2.15 per cent in the year to March, down from 2.6 per cent.
Read more: http://www.smh.com.au/business/rate...arely-budge-20120424-1xibl.html#ixzz1sv6bfM52
Here ya go...
http://www.smh.com.au/business/rate-cut-looms-large-as-prices-barely-budge-20120424-1xibl.html
Cheers,
Michael
