RBA and Interest Rates

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
 
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
 
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.
 
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.
+1........
 
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.
 
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
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.
 
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