# Reserve Bank interest rate meeting?



## carmo (27 August 2006)

Hi All
Can anyone tell me the reserve bank meets again to review interest rates?
carmo


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## krisbarry (27 August 2006)

*Re: Reserve Bank Interest Rate*

First Tuesday of every month.


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## krisbarry (27 August 2006)

*Re: Reserve Bank Interest Rate*

...Then on the first Wednesday of every month the announcement is made avaliable to the public regarding its decision to raise, lower or keep steady the rates.

All indicators point to another rate rise b4 years end.


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## scsl (27 August 2006)

*Re: Reserve Bank Interest Rate*



			
				Stop_the_clock said:
			
		

> ...Then on the first Wednesday of every month the announcement is made avaliable to the public regarding its decision to raise, lower or keep steady the rates.
> 
> All indicators point to another rate rise b4 years end.



Then during the day following the announcement, the stockmarket reacts wildy (up or down) depending on the decision and the RBA's statement/outlook.


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## TraderPro (30 August 2006)

*Re: Reserve Bank Interest Rate*

Check their website http://www.rba.gov.au for the exact time and date...

They also publish the latest moves on their website the exact minute it is announced.


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## noirua (30 August 2006)

*Re: Reserve Bank Interest Rate*

RAtes always seem to be raised above the level required and in contrast, below that needed. Commodities are pulling things one way and housing the other. Rates are best kept in line with Europe, UK ( also part of Europe but not in the monetary mechanism ) and the USA. That average is around 4.5%.


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## noirua (1 June 2009)

*Re: Reserve Bank Interest Rate*

Reserve Bank of Australia - Mr Ric Battellino, Deputy Governor.  "Global Monetary Developments", 28/5/2009.

http://www.brr.com.au/event/57971/global-monetary-developments


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## Datsun Disguise (2 June 2009)

Decisions are announced at 2.30pm on 1st Tuesday of the Month.

What are the thoughts on what should happen to provide the right stimulus? I have heard the argument that our high (compared to US, Japan, Britain) rate is now contributing stronly to our higher dollar. A higher dollar means less earnings from exports and therefore less money flowing into our economy - slower recovery?

My other personal bug bear is the wayt banks are not handing on the cuts - if you add up the cust kept by the banks and independant (of the RBA) rises in rates the gap between RBA rates and bank rates has increased by over 1. Inflation continues to contract, are we headed for deflation - that would be ugly. 

Slash those rates I say - what's the opposing view and why?


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## MACCA350 (2 June 2009)

Datsun Disguise said:


> Slash those rates I say - what's the opposing view and why?



Raise those rates I say - sick of the cr@ppy savings rates.........given the flood of FHB in the last couple of months, I think they slashed the rates too far.

That's my


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## tehnoob (2 June 2009)

Datsun Disguise said:


> Slash those rates I say - what's the opposing view and why?




How about because cheap credit is the root cause of the GFC and lowering rates further will just reinflate asset prices? Just putting it out there.


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## kincella (2 June 2009)

hello, only 25% of all those sales and loans were to the FHB's club....the rest were upgraders or downgraders...and its keeping the economy going, keeping some people in work...
probably heading for deflation...so rates need to drop furhter to avoid that


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## Datsun Disguise (2 June 2009)

tehnoob said:


> How about because cheap credit is the root cause of the GFC and lowering rates further will just reinflate asset prices? Just putting it out there.




I don't think cheap credit was the problem - shoddy lending practices was the root cause. Cheap lending would be great if it was only lent to people / projects that had a capacity to service the loan.

Slash the rates, regulate the banks lending practices(I don't hold bank shares). I still recall when I was looking for my first house 8 years ago being told I could borrow up to $700,000 on my wage of $70k and my wifes of $40k. They assumed 2 wages would continue and that we could sustain ourselves on a can of baked beans per day (between us..) I was disgusted by that and reckon it hasn't changed much.


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## Largesse (2 June 2009)

Datsun Disguise said:


> I don't think cheap credit was the problem - shoddy lending practices was the root cause. Cheap lending would be great if it was only lent to people / projects that had a capacity to service the loan.
> 
> Slash the rates, regulate the banks lending practices(I don't hold bank shares). I still recall when I was looking for my first house 8 years ago being told I could borrow up to $700,000 on my wage of $70k and my wifes of $40k. They assumed 2 wages would continue and that we could sustain ourselves on a can of baked beans per day (between us..) I was disgusted by that and reckon it hasn't changed much.




but think of how many spare bedrooms you could have had!


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## Beej (2 June 2009)

Datsun Disguise said:


> I still recall when I was looking for my first house 8 years ago being told I could borrow up to $700,000 on my wage of $70k and my wifes of $40k. They assumed 2 wages would continue and that we could sustain ourselves on a can of baked beans per day (between us..) I was disgusted by that and reckon it hasn't changed much.




But no-one was holding a gun to your head and telling you HAD to borrow the full $700k right? This situation is much better than being told that you can't get anywhere near what you know you could easily afford to repay (as would happen if we had real local credit rationing)!

Cheers,

Beej


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## MRC & Co (2 June 2009)

Pretty obvious result today, anyone notice the quick squeezes on bonds, AUD and SPI afterwards?  Knowing which way traders would probably go following a no cut.


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## tehnoob (3 June 2009)

kincella said:


> hello, only 25% of all those sales and loans were to the FHB's club....the rest were upgraders or downgraders...and its keeping the economy going, keeping some people in work...
> probably heading for deflation...so rates need to drop furhter to avoid that




Are you serious? So trillions of dollars pumped into the global economy, $80 odd billion of that (around 7-8% of GDP) committed to in the last 6 months. How does deflation arise?

Some of that money has clearly made it into equities as the fundamentals have changed little since October yet SP's are up over 20% from their lows. That there is (re)inflation.


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## tehnoob (3 June 2009)

Datsun Disguise said:


> I don't think cheap credit was the problem - shoddy lending practices was the root cause. Cheap lending would be great if it was only lent to people / projects that had a capacity to service the loan.




I agree that lenders were too lenient, however Alan Greenspan himself has admitted that he dropped rates too low.


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## bigdog (6 October 2009)

*There are no prizes for being first to raise rates!*


http://www.wabusinessnews.com.au/en-story.php?/1/75716/RBA-lifts-interest-rate-by-25bps/dba

*RBA lifts interest rate by 25bps*
6-October-09 by Rebecca Lawson

Australia has become the first western economy in the world to lift interest rates with the Reserve Bank of Australia today increasing the official cash rate by 25 basis points. 

The interest rate lift to 3.25 per cent follows a previous warning by Reserve Bank governor Glenn Stevens that the official rate would need to rise as economic indicators suggested the local economy was faring better than expected. 

A week ago, most economists were tipping the RBA to leave rates on hold at the 49 year low of 3 per cent, however some market observers were warning of a rate rise today.


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## prgudula (6 October 2009)

At its meeting today, the Board decided to raise the cash rate by 25 basis points to 3.25 per cent, effective 7 October 2009.

 

http://www.rba.gov.au/MediaReleases/2009/mr-09-23.html


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## boofhead (6 October 2009)

This is interesting as only last week the banks were saying they don't expect to raise rates before the next RBA increase in rates. Perhaps their analysers were very confident of what was about to come.


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## Bushman (6 October 2009)

Fear of a real estate bubble anyone?


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## Soft Dough (6 October 2009)

boofhead said:


> This is interesting as only last week the banks were saying they don't expect to raise rates before the next RBA increase in rates. Perhaps their analysers were very confident of what was about to come.




Ah it's nothing, still has 400 basis points to go before it is where it was in september.  

Westpac variable homeloan is at 5.81%

savings account at 4.7%

be nice to see them have 4.25% added


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## trainspotter (6 October 2009)

All aboard to rate hike heaven. Wasn't there a thread created as to who could give a date as to when rates would rise? Wil have to try and search for it to see who WON !!

Also have a look in the "house prices to rise" etc thread for my opinion on the matter.


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## MACCA350 (6 October 2009)

About time too, woohoo

cheers


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## trainspotter (6 October 2009)

Expect a few more over the next 6 months ! Shares up, house prices up, inflation up, jobs are up, debt is up so therefore INTEREST rates to follow.


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## Timmy (6 October 2009)

Bushman said:


> Fear of a real estate bubble anyone?




Be interesting to see the minutes when they are released.  There has been chatter on the blogs etc. about how it is now likely central banks will be much more focused on asset price inflation compared to in the past, when the asset bubbles were allowed to form as long as the goods and services CPI was on or under target.  I think this move could well validate such chatter (hadn't seen much of it, was only a very recently developing theme).  Wow.


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## robots (6 October 2009)

hello,

what happened to 0% interest rates Associate Professor S.Keen?

oops

thankyou 
robots


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## boofhead (6 October 2009)

trainspotter said:


> Expect a few more over the next 6 months ! Shares up, house prices up, inflation up, jobs are up, debt is up so therefore INTEREST rates to follow.




How are the jobs up? Unemployment rate only looks static because people are dropping out of looking for work for various reasons. The amount of hours worked is dropping which will probably be negative for consumer spending and that will flow through more.


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## Largesse (6 October 2009)

robots said:


> a true visionary






HAAAAAAAAHHAAHAHAHAHAH


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## Soft Dough (6 October 2009)

robots said:


> hello,
> 
> what happened to 0% interest rates Associate Professor S.Keen?
> 
> ...




Labor government recklessly going approx $200 billion into debt is what happened.
Plus almost all credible analysts expected things to get much worse than they did, not just S. Keen.

As for predictions, how about showing some skill and saying what percentage increase in house prices you think will happen over the next 12 months,

or will we just get another 5 word response with no content?


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## satanoperca (6 October 2009)

robots said:


> hello,
> 
> what happened to 0% interest rates Associate Professor S.Keen?
> 
> ...




I'm just thankful he was wrong at this point in time but does not mean that it could not occur in the future.

If everyone thinks that we are out of the woods they must have been standing in a desert in the first place. Nothing has changed except everyone is in more debt including the government.

Go credit growth it is the only answer! Ha

Nothing has been resolved.

We will see some of the greatest changes in society over the coming decade.


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## robots (6 October 2009)

Soft Dough said:


> Labor government recklessly going approx $200 billion into debt is what happened.
> Plus almost all credible analysts expected things to get much worse than they did, not just S. Keen.
> 
> As for predictions, how about showing some skill and saying what percentage increase in house prices you think will happen over the next 12 months,
> ...




hello,

my credentials already speak for themselves, one of five on the PLANET who got it right, yes brother think of the population and I am one of five who called it

fantastic, dont buy in 2001, dont buy in 2003, dont buy in 2005, dont buy in 2007

just buy

thankyou
robots


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## robots (6 October 2009)

hello,

gee with all the high fiving going on from the crew over the .25% rise I thought you could of rounded up some of the following:

Numbercruncher
Kimosabi
Chops A Must
Pepperoni
Knocker (new addition, looks like internet cafe business not going to well)
The financial advisor guy who sold out too early
Forgotten anyone?

ah the crew

thankyou
professor robots


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## Soft Dough (6 October 2009)

robots said:


> hello,
> 
> my credentials already speak for themselves, one of five on the PLANET who got it right, yes brother think of the population and I am one of five who called it
> 
> ...




Yep as I suspected, not prepared to even mention a percentage gain for the next 12 months.

I guess if in the past just going with the herd helped, then it may help now.

As for the market not going down, there is still time, and I guess you predicted that the government would come in and save the day.


So once again, and as everyone here can read, including yourself.

What percentage increase in house prices do you predict over the next 12 months.


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## robots (6 October 2009)

hello,

wouldnt have a clue, but i will be in it

thankyou
professor robots


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## Soft Dough (6 October 2009)

robots said:


> hello,
> 
> wouldnt have a clue, but i will be in it
> 
> ...




I guess that you lose credibility when you keep insulting people such as S. Keen with the guts and manlihood to put their reputation on the line and fail to do so yourself.

Poor form

I also guess that you must be really small fry in the scheme of things as you obviously do not budget, nor does your accountant advise you to do a budget.  All reasonable investments should have break evens and projections with assumed growth.


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## robots (6 October 2009)

Soft Dough said:


> I guess that you lose credibility when you keep insulting people such as S. Keen with the guts and manlihood to put their reputation on the line and fail to do so yourself.
> 
> Poor form
> 
> I also guess that you must be really small fry in the scheme of things as you obviously do not budget, nor does your accountant advise you to do a budget.  All reasonable investments should have break evens and projections with assumed growth.




hello 

i took up a bet with Satanoperca just recently and collected BigTime, 

yes small fry, just  a humble building worker trying to get through life, just helping out others as they battle the demons of our fast paced world

putting them on a plan to financial freedom and to a place of true happiness

thankyou
professor robots


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## Timmy (9 October 2009)

Bushman said:


> Fear of a real estate bubble anyone?






Timmy said:


> There has been chatter on the blogs etc. about how it is now likely central banks will be much more focused on asset price inflation compared to in the past,




This from the Financial Times:

_according, to Morgan Stanley's Joachim Fels:

The RBA's move holds an interesting lesson that is worth keeping in mind when thinking about other central banks' prospective behaviour in the upcoming tightening cycle: *strongly rising asset prices may induce central banks to start lifting rates early from record-low emergency levels even if growth is still below-trend and inflation below-target.* The RBA expects growth to return to trend next year, and *also remarks that "dwelling prices have risen appreciably over the past six months"*._
My bolding.

http://ftalphaville.ft.com/blog/200...ing-lesson-from-the-rba-rate-hike/?source=rss

Nice to see the good people at Morgan Stanley are reading ASF, where we always strive to be ahead of the curve


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## satanoperca (9 October 2009)

They are smart cookies arn't they.

Rising house prices is meant to be good for the country just ask Kincella & Robots.

Cheers


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