whats you thoughts.
interest rate up and who much?.
I think up 3/4% up and then after screams 1/4 back down to line up for the comming election.
Do you mean 3/4 of a percent (.75%) up all in one hit now?
Like .75 in November?
I agree that would set the monkeys chattering.
I doubt it, but I do see why the govt would like to have a dropping int rate while they are in election mode.
Isn't the reserve bank absolutely separate and distinct from the government?
GIDDO said: ↑
Isn't the reserve bank absolutely separate and distinct from the government?Click to expand...hell no its not.
The government is perfectly within its rights and abilities to claim that interest rates will never go up under their government. Its somethnig they, and only they control, and they have complete say over.
The reserve bank ? whats that ? THats just a government department that does what the ministers want.
personally, i'd like it not to go up just now.. although it'll make my fixed portion look better, my variable is currently 7.09....
At 6% the cash rate is already at the highest level since 2000 when it got to a high of 6.25%
I am tipping history will repeat itself and only .25% to go before it turns around.
I will vote for .25% increase, if at all, the USA economy is flattening which will slow the world economy.
I also think the RBA is far more autonomous than the knockers believe.
I can't envisage more than 0.25% this year.
But I don't see CPI calming down enough yet, so I expect another 0.25% 1st half of next year.
After that....who knows. Other larger (western) economies look shakier than Australia at the moment.
TheCamel said: ↑
hell no its not.What Government has ever claimed interest rates will never rise while they are in power?
The government is perfectly within its rights and abilities to claim that interest rates will never go up under their government.Click to expand...
TheCamel said: ↑
Its something they, and only they control, and they have complete say over.Click to expand...So inflation plays no part in interest rate movements - the only factor is what the Govt wants to happen?
Stevens defines keys to riseHere's a book you might enjoy on the topic:
By Terry McCrann
October 12, 2006 07:29am
IT'S official. Whether or not we get another rate rise rests entirely on the September quarter inflation figures out in two weeks.
Simply: "bad" inflation numbers, rate rise; "benign" numbers, no rate rise.Click to expand...
Jamie said: ↑
Here's a book you might enjoy on the topic:Peter Costello's the ghost author
Jamie Click to expand...
Reserve bank is not controlled by government. In fact the head of reserve bank somewhat controls the government because he can always say No to whenever the government wants some money.
I would assume the rate to not move this month, but can't say if it will stay flat for the rest of the year. The 2 main factors it went up last time was that fuel was going north and banana's were going north. Fuel has come back down big time in the recent month and I think banana's haven't increased in price much lately. Basicly, the weekly costs for the average family judged by the government would either stay the same or may have droped a little bit.
I just prefer to focus on getting finance and buying properties
One or two % up and down makes no difference to me!
And if it did Id be worried for your investment model
Xenia said: ↑
One or two % up and down makes no difference to me!Click to expand...It could mean another round the world holiday! We're definitely going to get one in Nov and 60% chance of one more in March quarter. We were paying lower commercial rates than these resi rates last year. If this isn't going to put breaks on the market, I don't know what will. Great if you're bargain hunting, especially into X'mas...
Also noticed Suncorp is offering 3 year at 6.99%. That will surely be gone by next week.
shelldrake said: ↑
I The 2 main factors it went up last time was that fuel was going north and banana's were going north. Fuel has come back down big time in the recent month and I think banana's haven't increased in price much lately.Click to expand...I just bought lady finger bananas for $6.95kg, down from a high of $18.
shelldrake said: ↑
Fuel has come back down big time in the recent month and I think banana's haven't increased in price much lately.Click to expand...Yes, I must admit...I have missed my bananas lately.
I would pick 25 point increase before xmas in an attempt to curb excess xmas spending.
After xmas the goverment will do its best to talk the Reserve Bank out of further rises before the next election.
Try this http://members.cox.net/dmrc/Projected_Rates.htm then click on Australian interest rates
Economic Conditions and Prospects
Address to the Australian Business Economists and the
Economic Society of Australia (NSW Branch)
Annual Forecasting Conference Dinner
Sydney - 11 October 2006
CHISEL said: ↑
Try this http://members.cox.net/dmrc/Projected_Rates.htm then click on Australian interest ratesInteresting graph...I wonder if it has any predictive powers at determining when our next election will be? MMmmmm....
CHISELClick to expand...
This a site I found while l am learning currencies. interest rates have a bearing on exchange rates also, eg a hint of an interest rate hike while the economy is going well usually pushes the currencie upwards like today.
AUD/USD 74.17 TO 74.93