I don't think the CBA is waiting till Friday ...
http://www.theage.com.au/business/cba-ups-rates-anz-eyes-move-20100504-u61p.html?autostart=1
http://www.theage.com.au/business/cba-ups-rates-anz-eyes-move-20100504-u61p.html?autostart=1
No Interest rate thread?
- Thread starter yadreamin
- Start date
Hey if everyone was calculating with their money then there would be no one to fill our IP's, everyone would have a PPOR and an IP with no tenants. So lets be thankful that there is that long term payoff for people that sacrifice wants & that take the time to study into investing, then follow on with it.
Back on Topic - yeah rates seem to be getting back to average levels. Couple of questions though, just for conversation.
When should the difference between the Cash Rate and banks variable rates minimise again? if they dont the gap will continue to rise and all of a sudden with 6% cash rate we will have 10% variable loans.
Also, does anyone see rates hitting 1991 levels of 12 - 14%? To me there is too much debt around and so many people would go broke if it got there, or anywhere near there for that fact.
Back on Topic - yeah rates seem to be getting back to average levels. Couple of questions though, just for conversation.
When should the difference between the Cash Rate and banks variable rates minimise again? if they dont the gap will continue to rise and all of a sudden with 6% cash rate we will have 10% variable loans.
Also, does anyone see rates hitting 1991 levels of 12 - 14%? To me there is too much debt around and so many people would go broke if it got there, or anywhere near there for that fact.
people will go broke @ 6%, let alone 12%.
bad luck to anyone in 'mortgage stress' already, they obviously didnt have any foresight that, maybe, rates dont stay at all time lows, and on average, they will be at an average level. so many people buy outside their means when rates are low then end up on ACA/TT whinging about rates. life lesson for those people.
when all the competition in home loans that died in last couple of years comes back, perhaps.
when all the competition in home loans that died in last couple of years comes back, perhaps.
"CBA said the rate rise will apply to a range of deposit and variable home loan accounts, effective Friday, and reflected recent increases in market interest rates and wholesale funding costs."
Does anyone know what economic conditions led to these rates? That might help to determine whether we are headed that way.
I bought my first house in 2002, so didn't really take an interest in such matters in 1991.
OK I'm educationing myself... and bloody lovin' it 
So high interest rates are caused by high inflation rates, as high inflation rates erode the value of money. So a high interest rate in a time of high inflation wouldn't have the same effect as in a period of low inflation.
What causes high inflation rates? Money supply growing faster than the rate of economic growth.
So are we in danger of hitting the highs of the late 80's? I wouldn't have thought so.
http://www.abc.net.au/news/stories/2007/08/08/1999290.htm
http://en.wikipedia.org/wiki/Inflation
So high interest rates are caused by high inflation rates, as high inflation rates erode the value of money. So a high interest rate in a time of high inflation wouldn't have the same effect as in a period of low inflation.
What causes high inflation rates? Money supply growing faster than the rate of economic growth.
So are we in danger of hitting the highs of the late 80's? I wouldn't have thought so.
http://www.abc.net.au/news/stories/2007/08/08/1999290.htm
http://en.wikipedia.org/wiki/Inflation
i would thought high inflation leads to interest rates hike...
So, if RBA's intention to control inflation, then logically, Rudd's 40% superprofits tax should stop this problem. after isn't it our export of iron ore, coal and other mining commodities causing this inflation problem?
question is interest rate rise verses 40% profits tax? which will affect me more? which one is the lesser of evil?
So, if RBA's intention to control inflation, then logically, Rudd's 40% superprofits tax should stop this problem. after isn't it our export of iron ore, coal and other mining commodities causing this inflation problem?
question is interest rate rise verses 40% profits tax? which will affect me more? which one is the lesser of evil?
OK I'm educationing myself... and bloody lovin' it
So high interest rates are caused by high inflation rates, as high inflation rates erode the value of money. So a high interest rate in a time of high inflation wouldn't have the same effect as in a period of low inflation.
What causes high inflation rates? Money supply growing faster than the rate of economic growth.
So are we in danger of hitting the highs of the late 80's? I wouldn't have thought so.
http://www.abc.net.au/news/stories/2007/08/08/1999290.htm
http://en.wikipedia.org/wiki/Inflation
what if your wages don't grow at the same rate
.inflation is becoming a problem ..
i am astounded at the lack of peoples knowlege of basic economics, that are here investing vast sums of money.
what if wages don't grow at the same rate as what? interest rates?
wouldn't you need wage growth to support high inflation?
I'm not exactly sure what you're saying, but happy to hear it.
If inflation is becoming a problem, what in your opinion is causing it, and why won't rising interest rates have any affect on it?
wouldn't you need wage growth to support high inflation?
I'm not exactly sure what you're saying, but happy to hear it.
If inflation is becoming a problem, what in your opinion is causing it, and why won't rising interest rates have any affect on it?
the question is do you want a larger share of a smaller pie or a smaller share of a larger pie?
all these cancelled projects employ people, that buyer from the butcher,baker and candle stick maker. round and round it the cuts go until the total losses are huge. all becuase they got greedy and refused to allow reward for risk
but yes the tax will reduce inflation - a collapse in economic activity should see inflation drop theoretically, unless say money supply is going into over drive. must nearly be time to replace the nations stock of plasmas?
was saying what if wages dont grow at the same rate as interest rates as well as inflation.
wages don't have to rise for there to be inflation, increased money supply thought gov stimulus. also the money supply increases because of fractional reserve banking .keeping interest rates low adds to the problem
