Predicting interest rates...

[Invest]

Hi all,

Do you think that the rates will still be very low (below 6%) in about 2.5-3 years time? Or do you think the rates will go up again in 2 years time easy?

Judging from the 88 market crash, what was the situ with interest rates there? I remember they were sky high?

 

[AUSPROP...]

pointless predicting really - 6 months ago interest rates were on the rise and everyone would have said rates are on the rise... the world can change in quantum leaps in the space of a few months

 

[Invest]

pointless predicting really - 6 months ago interest rates were on the rise and everyone would have said rates are on the rise... the world can change in quantum leaps in the space of a few months

Indeed. So in reality a person who is an economist knows nothing.

 

[boomtown]

Indeed. So in reality a person who is an economist knows nothing.

No, an economist is someone who knows more about nothing than a non-economist.

 

[Invest]

No, an economist is someone who knows more about nothing than a non-economist.

........lol

 

[Bill.L]

Hi all,

Sorry Boomtown, you are wrong.....

No, an economist is someone who knows more about nothing than a non-economist.

An economist is someone who THINKS he knows more about nothing than a non-economist.

bye

 

[JIT]

No, an economist is a specialist in the field of knowledge commonly known as economics.

And like all specialists, they are peoples who over time learn more and more about less and less until eventually...they know everything about nothing.

 

[Invest]

Its tragic when you can laugh at the people who pretty much control our financial life... and as this thread suggests, these people know NOTHING about economy or where its heading.

PS they outta to pay our fixed break fees...

 

[Frank_A]

Take a look at the 3 year fixed rates of lenders. They're based on market predictions for future cash rates. Most are offering fixed rates above the current variable rate, implying that based on current information rates will be higher in 3 years time.

 

[sparky23]

Take a look at the 3 year fixed rates of lenders. They're based on market predictions for future cash rates. Most are offering fixed rates above the current variable rate, implying that based on current information rates will be higher in 3 years time.

However tomorrows current information will be different! LOL

 

[lizzie]

Take a look at the 3 year fixed rates of lenders. They're based on market predictions for future cash rates. Most are offering fixed rates above the current variable rate, implying that based on current information rates will be higher in 3 years time.

i agree that the 5-10yr fixed rates are higher than the 3yr ... but not signficantly. on average, the 10yr rate is around 1% higher than the 3yr.

i've been following the rates weekly and across the board since early dec08, all rates have remained unchanged or dropped, for all the major banks, for all fixed periods (except westpacs 4.99% thingy).

 

[Rockstar]

Its tragic when you can laugh at the people who pretty much control our financial life

Thanks for reminding me to laugh at myself - and no it's not tragic that I can laugh at myself - it is tragic that I need reminding - as I can see how silly I have been getting bogged down thinking that someone else has been controlling my situation.

 

[plumtree]

Based on worldwide trends, interest rates will continue to fall until economies show signs of improvement. The response will then be to try to counter inflation with interest rate rises.

However, rates in Japan, US and the UK are at all time lows and there is no indication that things are getting better. All below 1.5%! A good guess is that it will be a long time before things change effectively.

I'm going to give it at least 3 to 4 years before any real change unless something very unpredictable intervenes

 

[Invest]

Based on worldwide trends, interest rates will continue to fall until economies show signs of improvement. The response will then be to try to counter inflation with interest rate rises.

However, rates in Japan, US and the UK are at all time lows and there is no indication that things are getting better. All below 1.5%! A good guess is that it will be a long time before things change effectively.

I'm going to give it at least 3 to 4 years before any real change unless something very unpredictable intervenes

3-4 years in Australia as well or only in UK, Japan and US?

I am hoping the rates stay down for another 2.5 years...