Where do you see rates by the end of 2012? Up, down or on hold? How much of a change (100 basis points? 50 basis points?)? Please provide reasons as well for your answers.
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Where do you see rates by the end of 2012? ~ Please provide reasons as well for your answers.
Why do you want to know? None of us know..Not even the worlds best Economists, the RBA's Governer or their Board of Directors. Every answer here will be a guess.
From an investors perspective Interest Rates are purely a cost of doing business.
But if you had to make an educated guess of whether interest rates were going to drop or rise when the market is expecting it (see Berlina's chart) and the majority of the people on the poll are expecting it, I would be more inclined to say they will drop.
Ok lets go with that.....then what?
My point is whats the point?
As you mentioned, interest rates are a cost of doing business which you want to minimise if possible.
Why not play it safe and put a bet on each way - split 50/50 fixed and variable.
Very nice graph - where abouts on the ASX website did you find this?
Because im trying to decide whether to fix my rate or not (6.3% is looking attractive) or should I hold on and see how the market plays out in 2012 to try and fix at a lower rate. I would feel safer chasing a lower rate knowing that the market is predicting it.
As you mentioned, interest rates are a cost of doing business which you want to minimise if possible.
I'll be watching over the next few months to see what happens with interest rates. When rates went low in 2008ish I noticed that fixed rates started climbing out about 3 months before the implied yield curve was slated to hit bottom. At the moment I'll have a good look around March 2012, and if interest rates have dropped or are dropping, I'll seriously consider fixing some or all of my property related loans.
Well thanks but no kudo's came through.Yes fixed rates direction I would have thought preclude variable rates. With the banks that is...
Rixter....do I have to kudos you yet again....?
Done..!
You keeping tabs on kudos...?
LOL!
Sorry but when "dinner's ready" is called, I'm gettin' fed before any kudos is given....sory it's late Rick...
Nope, think of it as due diligence - I'm just keeping you honest!
Am I not trustworthy in the kudos dept...?
Lol...all good mate, we might have that beer or three in Feb '12...we will be there for the month.