RBA just put rates up again to 4.25%

Statement by Glenn Stevens, Governor: Monetary Policy Decision

RBA said:
At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.25 per cent, effective 7 April 2010.

The commentary above is very hawkish. No if's, but's or maybe's, just a very strong case for why rates went up and will do so again. Glenn Stevens is being unambiguous and is sending a clear message that this isn't the end of it either.

The NAB has already said they'll only match the 25bp so lets see what the others do...

Cheers,
Michael
 
wonder what will save the RBA this time round ?

Last time they tried to kill the" banana and petrol economy" when the GFC saved us from double digit jeopardy........

Common cents (sic) might have been to see how the employment and sales figures are actually panning out with the recent increases.

Oh well, should be good for people on hols, and buyoing BIG tvs, but not so flash for exporters

ta

rolf
 
I read articles every day for the past 2 weeks including today that melb and sydney will continue to rise due to shortage, despite rate rises, but my gut says, 1-2 more rises, and the market will flatten considerably.
 
YES!!!

Maybe we can see some heat out of the market.

This is a good thing in the current market, not a bad thing. Embrace it.

Also for business, I dont feel the coast is clear, and i believe that the rates will need to come back when the next wave of disaster come through.
 
I read articles every day for the past 2 weeks including today that melb and sydney will continue to rise due to shortage, despite rate rises, but my gut says, 1-2 more rises, and the market will flatten considerably.


my gut says you need to get out there and do the ground work to see that simply wont be the case.

There are simply just too many buyers out there, ALL of them wanting in and having the means to get in.... but many unable to actually find a property before it gets sold.

More and more i am hearing of properties selling even before being listed on the internet, people selling privately, selling well above asking price, buyers outbidding each other just to seal the deal... etc.

A couple of rate rises isnt going to kill that off so quickly IMO.
 
my gut says you need to get out there and do the ground work to see that simply wont be the case....More and more i am hearing of properties selling even before being listed on the internet, people selling privately, selling well above asking price, buyers outbidding each other just to seal the deal... etc....A couple of rate rises isnt going to kill that off so quickly IMO.

I agree Witzl. Check out some of the Opens this Saturday - it will make not a scrap of difference IMO.

I think it will take 1.5% more IRs to have any appreciable effect and they are not likely to do that until business gets (much) better.
 
in the end, rent rates will go up as well... ... we pass it on? do you? - obviously not the whole lot, part of it.
 
I could have guessed it because Logic doesn't work with these guys :eek:

I'm not worried because they'll slow down the economy too much and when they realise their mistake they''ll pull the lever hard the other way so IR's will average out for me.

The good news is that in the short term our $ will go higher which is a good for those who are buying imported goods (all of us :)) and those who are planning overseas holidays (me :D)
 
Actually, I had forgotten how much higher Brazil's rates are over ours, and their return on bonds = 11.27% vs Australia's 4.63% for the one year.

Sovereign risk must be at an all time low considering the demand for their commodities, and the chart below could be fairly interpreted as historical inflationary and fx risk being minimal.


z
 
IBTD -- I beg to differ??? Please explain;) Also why are you looking at Brazil I thought you just bought a property, moving already.

Cheers

actually, I meant to say minimal risk IBTD, not 'minimal risk free' :eek:
yes Ianinvestor, interest bearing term deposit.....sorry, being over 50, I thought ibtd was a widely known acronym.

yeah we have some funds in the offset for that property until we're clear on the reno options (the architects left us more confused than decisive. Am talking to some builders and draftsmen this week, so hopefully we'll come away clearer.)

Bonds are something to seriously consider for the smsf, which has a bit of cash sitting in ibtd....
And if I knew how to measure the risk and execute, I'd borrow usd or yen, and invest in Real bonds.
 
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