http://www.abc.net.au/news/stories/2010/05/04/2890038.htmat least there's one positive out of all this - KRudd won't be re-elected if it keeps up.
Glenn Stevens said:With the risk of serious economic contraction in Australia having passed some time ago, the Board has been adjusting the cash rate towards levels that would be consistent with interest rates to borrowers being close to the average experience over the past decade or more. The Board expects that, as a result of today’s decision, rates for most borrowers will be around average levels. This represents a significant adjustment from the very expansionary settings reached a year ago.
Damn, I was wrong. Oh well, here's hoping all these rate rises will slow down the lower end of the Melbourne market, in time for me to buy.
Quoted from Herald Sun website:
"It adds up. That extra cash could pay for a $259 Virgin Blue return flight from Sydney to Christchurch, an iPod touch for $244 or four months worth of morning coffees from the local café."
I read that in reverse, maybe if people didn't waste money on these gadgets, and coffees etc. they could afford to hold onto their homes and not cry 'mortgage stress'. Those daily coffees etc. sure add up if you're on an average salary paying a mortgage!