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What will it be - up or steady?
August '07 interest rate decision?
- Thread starter Uncle Festivus
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numbercruncher
Beware of Dropbears
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Re: August '07 Interest rate decision
Up one tick - Id like to see it at 10pc in the medium term.
Thankyou.
Up one tick - Id like to see it at 10pc in the medium term.
Thankyou.
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Re: August '07 Interest rate decision
I think it's a flip of the coin job on this one, though I am leaning to no rise.
Inflation is rising at 2.6% which is slightly on the high side of the RBA range of between 2% and 3%.
Surely they don't want the AUD to get any stronger, although those importing are getting a lot of bang for their buck, as are holiday makers.
But housing affordability is a major issue in all states, and a rise in rates wont help the cause. Also, with a credit squeeze on the cards, it will be harder to get borrowed money.
Credit Card debt is at critcal levels with people living beyond their means.
You could argue for a rise in rates to curb spending in an attempt to slow the economy a tad, but the top end of town are less affected and may well go on a import spending spree.
I personally don't think a rise will get the desired affect, and ironically could cause more damage down the track.
And let's not forget, it is an election year!
I think it's a flip of the coin job on this one, though I am leaning to no rise.
Inflation is rising at 2.6% which is slightly on the high side of the RBA range of between 2% and 3%.
Surely they don't want the AUD to get any stronger, although those importing are getting a lot of bang for their buck, as are holiday makers.
But housing affordability is a major issue in all states, and a rise in rates wont help the cause. Also, with a credit squeeze on the cards, it will be harder to get borrowed money.
Credit Card debt is at critcal levels with people living beyond their means.
You could argue for a rise in rates to curb spending in an attempt to slow the economy a tad, but the top end of town are less affected and may well go on a import spending spree.
I personally don't think a rise will get the desired affect, and ironically could cause more damage down the track.
And let's not forget, it is an election year!
Another factor is the high dollar and oil prices being back up again acts in the same way as an interest rate rise. As well - the interest rates businesses can borrow at in the corporate bond market has alread gone up substantially in the wake of the sub-prime mortgage crisis.
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Early on in the year all the so called 'experts' gave a rate rise a 70% chance. almost everyone was saying that there would be one, but what do you know?, there wasn't one.
This one seems almost the same only this time none of these experts have publicly said (on the news, where most people get their info from) how much of a chance they give a rate rise.
I voted steady. but even if it did go up, so what! Interest rates would still be in the low region.
Cheers
This one seems almost the same only this time none of these experts have publicly said (on the news, where most people get their info from) how much of a chance they give a rate rise.
I voted steady. but even if it did go up, so what! Interest rates would still be in the low region.
Cheers
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I am more than happy for interest rates to rise
We would hate to have a housing crisis now would we?
Familes sleeping in tents, while others gorge on a property portfolio of 97 homes.
Time to re-distribute the wealth a little and take the heat out of a basic human need.
We would hate to have a housing crisis now would we?
Familes sleeping in tents, while others gorge on a property portfolio of 97 homes.
Time to re-distribute the wealth a little and take the heat out of a basic human need.
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I would say it's a 50/50 chance. Inflation is still within the target range, the bond market is up, and higher the AUD is, the worse it is for our exporters. It is also an election year, so that might have a factor as well. So, I'm leaning to steady this time, but there might be a rise before the end of the year.
numbercruncher
Beware of Dropbears
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lol i can see it now, 60 minutes , Hello im property investor 06457, I used to have an empire of 97 Investment properties, I now sleep in the back of my XF falcon. Anyone can join this riches to rags rollercoaster, just visit your friendly Subprime broker and realty agent today (>:
With some strong economic data of late there is definitely a case to be made for a rate rise. It has been factored in by most of economists in the market now. IMHO I think the RBA has time to sit back and wait a little longer but as mentioned before, toss a coin.
Yes they will be meeting early next year. They'll also be meeting every month until early next year as they've done for decades.
More importantly they are meeting today with a decision on interest rates due tomorrow.
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Well it looks like I'm the only one who voted for a decrease.
Logic: The fed bank has no logic.
Logic: The fed bank has no logic.
yes but because of the election circus I thought they put off raising rates.So the next chance of raising rates will be next year
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Technically the RBA are a body independant of the government. Just how independant is on occasion a matter of debate
chops_a_must
Printing My Own Money
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Funny that, it would be as low as when keating left wouldn't it? I thought this party always kept interest rates lower than Labor?
Technically the RBA are a body independant of the government. Just how independant is on occasion a matter of debate
True, but I doubt they would raise rates during an election campaign as it could make or break it for libs or labs.I think they will take into account the fact that they will have to wait so they don't influence the outcome during election time.
springhill
Make the drill work for YOU
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Its my understanding they meet and discuss interest rates every 3 months. Next one will be round election time, no way in hell there will be rate rise then, next year is too long to wait, so mortgage the house and put it on rising tomorrow. Not a bad thing, people are pissing their money up the wall left, right and centre. Not to mention first home buyers wanting the 4 by 2 as ther first home and borrowing the absolute maximum amount they can to get it,then cry when interest rates rise. Tough sh*t IMO. Start affordable then work your way up. Housing envy is the new pen*s envy!
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Re: August '07 Interest rate decision
Hint: Same or increased supply, reduced demand as fewer are able to get finance to buy.
Low interest rates / easy credit are what caused the unaffordable housing in the first place.
My best guess is an increase of 0.25% followed by another one in a few months. That's based on looking at the markets more than anything else. The market says it's time to raise the rates.
And if it's harder to get borrowed money, what's likely to happen to house prices?
Hint: Same or increased supply, reduced demand as fewer are able to get finance to buy.
Low interest rates / easy credit are what caused the unaffordable housing in the first place.
My best guess is an increase of 0.25% followed by another one in a few months. That's based on looking at the markets more than anything else. The market says it's time to raise the rates.
