up .25 I think.
Why? To keep a steady hand on the tiller... steady as she goes...
Why? To keep a steady hand on the tiller... steady as she goes...
What the Reserve will do Tuesday
- Thread starter Perth Investor
- Start date
Bring it on
I would welcome a rate rise this month or next.
There will be opportunities for those ready to purchase now (or soon) whilst simultaneously assisting some vendors out of their potential fiscal dilemma's.
I would welcome a rate rise this month or next.
There will be opportunities for those ready to purchase now (or soon) whilst simultaneously assisting some vendors out of their potential fiscal dilemma's.
Suppose you have to take notice of Paul Bloxhom, fresh from 12 years in senior positions with RBA.
12 years... he'd have been growing roots by then. presumably a LSL milestone kicked in at that point?
strewth martha, if the RBA thinks it can control inflation thru IRs then brace yourself for 18%. They will be bankrupting every non-resources going concern in the nation in a veign attempt to offset the resources companies insatiable demand for labour and materials
In addition to the juiciest private sector offer he's ever seen. Presume he can get an elder's role back at the RBA after feathering his nest as HSBC's chief economist.
A pertinent piece of research with his name on it :
Housing Turnover and First-home Buyers
Actually an interesting question to contemplate .
Everyone is saying risk-on, and resource demand full steam ahead....buckets of private investment ready to rocknroll. So RBA wants to jack up rates to brake the accompanying increase in consumption.
Bloxham reckons a stronger aud will help slow consumption and should reduce requirement ot raise rates as high. That seems counterintuitive to me. I'd have thpught higher aud will increase imports and higher rates will attract more foreign funds into govt bonds.
.....which is what i would have thought as well.
logic possibly being... that imports are a leak from the economy and inflation results from excess demand within the domestic economy. Imports are a pressure release valve.
also uncompetitive exporters will be shut down, cooling the economy further
Nothing will happen today! high dollar, inflation in check, spending down, house prices down....
No....just that people will spend money on hoildays overseas.
Also, a higher dollar also makes imports cheaper.
Also, a higher dollar also makes imports cheaper.
Too close to call whether it will be today, Nov, Dec.
I vaguely recall there never used to be so many meetings - now there's one on the first tues of every month except January.
I vaguely recall there never used to be so many meetings - now there's one on the first tues of every month except January.
Yeah I agree , like everything now it's way overboard. And what with the sort of mortgages people have in this country now they're suppose to be hanging on a thread mth in and mth out on top of it - bloody ridiculous, overkill !
Up another 1/4 though seems to be the general consensus but I've also been hearing another 4 or 5 rises on top of it likely next yr too.
Cheers
Up another 1/4 though seems to be the general consensus but I've also been hearing another 4 or 5 rises on top of it likely next yr too.
Cheers
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Was discussing this with a friend who believes if IR hit 8%, they'll have to come back down pretty soon.
He cites the many overstretched FHO's & first time investors who bought when IR were 5%'ish & believes the govt can't let rates go too high over the next few years as this will result in many of these people having to sell.
His belief is that too many Aussies have too much vested in their homes to be able to cope if IRs rise & therefore the govt won't let this happen.
Others thoughts?
He cites the many overstretched FHO's & first time investors who bought when IR were 5%'ish & believes the govt can't let rates go too high over the next few years as this will result in many of these people having to sell.
His belief is that too many Aussies have too much vested in their homes to be able to cope if IRs rise & therefore the govt won't let this happen.
Others thoughts?
LOL
I been saying were on the brink, just go and talk with your local business owners in your neighbourhood. If interest rates go up much higher families will fall.
Look at it this way, we can all look at statistical data, however when the people on the streets are hurting, actions gets taken.
Stimulus was introduced to prevent damages before and so was rate reductions.
With high debt to income levels a 7% reserve rate is just the same impact as a 1990 20% rate.
Why because peoples debts today are for example 10 times larger then 1990 and the wages are say 5 times larger.
Its just simple numbers.
I have been saying for a while now, I cannot see rates increasing 50bp over their current rates anytime in the next 12-18 months.
Thats just my food for thought though.
I been saying were on the brink, just go and talk with your local business owners in your neighbourhood. If interest rates go up much higher families will fall.
Look at it this way, we can all look at statistical data, however when the people on the streets are hurting, actions gets taken.
Stimulus was introduced to prevent damages before and so was rate reductions.
With high debt to income levels a 7% reserve rate is just the same impact as a 1990 20% rate.
Why because peoples debts today are for example 10 times larger then 1990 and the wages are say 5 times larger.
Its just simple numbers.
I have been saying for a while now, I cannot see rates increasing 50bp over their current rates anytime in the next 12-18 months.
Thats just my food for thought though.
