RBA and Interest Rates

Discussion in 'Property Finance' started by digs75, 18th Aug, 2011.

  1. digs75

    digs75 Member

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    Would like to know from readers your take on where you think interest rates will go down or stay the same for the remainder of the year ?

    Do you think a .25% decrease (if that occurs) would entice households to start spending more or not have any bearing on consumer spending.

    Seems like most households are saving their pennies for a rainy day and not willing to part with their money for now.

    Interested to know what you think will happen to rates for the rest of 2011.

    http://wp.me/p1q5i5-3l
     
  2. Aaron Sice

    Aaron Sice Seldom Seen Kid

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    mate you need to do a bit of a search - and lose the linky.
     
  3. Mick C

    Mick C Mortgage Broker

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    I reckon rate will fall ...may not be now; but rates will be at least 0.5% lower 1 year from today.

    A rate drop is expected, it's in the news all the time...the doom and gloom etc- so even if the rate did fall by 0.25% it won't have any massive impact!

    Works simliar to the stock market- all about expectations...and predictions.

    Personal view.

    Regard
    Michael
     
  4. buzzlightyear

    buzzlightyear Member

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    I think rates will remain the same (although hope downwards). And in the RBA speak, 'mildy restrictive' on the economy.

    Even if rates were to fall by .25 I doubt it will make any material impact on property investor sentiment or households in relation to PPOR upgrades.
     
  5. Token Funder

    Token Funder Token Funder

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    +1........
     
  6. toony

    toony Member

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    R u predicting rates to increase 1%?
     
  7. Mick C

    Mick C Mortgage Broker

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    LOl token i hope you dont work for the RBA...and not part of the board :)

    1% would be a killer in this market
     
  8. Deltaberry

    Deltaberry Member

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    Right now some fixed rates from reputable lenders out there are a good 75bps below many people's variable rates.

    Do you see the RBA cutting rates by 75bps? Personally I'm still very sceptical about any cut at all.
     
  9. Ms Jade

    Ms Jade Down the Rabbit Hole

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    I think you'll find "+1" = "I agree with the post above."
    Now +2, as I agree also.
    A reduction of 0.25 would have a lot less impact than a rise of 0.25 IMO
     
  10. Rolf Latham

    Rolf Latham Member

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    get with the chat speak folks, I think he means he is one to agree to the quoted message.


    But hey, if TF is looking to add one to the RBA rate, then Id say finish the job and introduce a H20 vapour tax ;)

    ta
    rolf
     
  11. silverx

    silverx Member

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    google plus much? :)
     
  12. Token Funder

    Token Funder Token Funder

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    Correct. Don't see a drop b4 Xmas absent further craziiness abroad. That said, less confident today than a fortnight ago....it's panicky out there I tells ya!

    I've had the same view of the key driver here since '07....if the global economy tanks to the point that Chinese demand slows (and they can't prop in up internally without inflation getting out of control), then the RBA's concern about resources-driven inflationary pressures will abate,as will their tightening bias.

    Not that I think it will do much for domestic demand or house prices. If they reduce rates , the same poeple who are currently deleveraging or spending money on things and in places other than the big retailers will continue doing what they're doing.
     
  13. buzzlightyear

    buzzlightyear Member

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