Interest rates - where are they heading?

[BradK]

So, where are interest rates heading?

A new stimulus package - have we forgotten about inflation? A $1000 bonus for me for the little one - BUT, I would prefer for them to keep that money and put it towards the pensioners. WHY I am getting a thousand bucks for the little one??

Oh well, dont kick a gift horse in the mouth.

So, where are interest rates heading? I want LOW interest rates so that I can pay off my house quicker. I was hoping that in the wash out of this 'credit crisis' we, as Australians, would stop regarding housing as a commodity.

In his stimulus package, Bush said that he wanted to 'return to vigorous growth' - have we learned nothing? I was bracing to get hit by the BIG ONE. But, looks like we have learned absolutely nothing from this and the bull is back.

Paying off my house, growing a vege patch and getting some chickens.

Brad

 

[xoa]

Yep, heading towards lower interest rates. Got to keep people borrowing and spending, the pyramid scheme will collapse otherwise.

 

[stocks4beginners]

Brad, let me quote from a story I read online.

"Leaders of euro zone countries held an emergency meeting on Sunday to decide pan-European measures aimed at propping up the battered financial sector.Governments remain committed to support the financial system and therefore to avoid the failure of relevant financial institutions, through appropriate means including recapitalization. In doing so, we will be watchful regarding the interest of taxpayers and ensure that existing shareholders and management bear the due consequences of the intervention. Emergency recapitalization of a given institution shall be followed by an appropriate restructuring plan.Ensuring sufficient flexibility in the implementation of accounting rules given current exceptional market circumstances."

I am sure most of them are really trying you know because it politically this is not good for them either. Let us hope they would some how find a solution to this.

 

[BradK]

ANZ just cut rates by 0.25% on variables.

I thought 6% (for the consumer) was a bit nuts even last week - but, I reckon we could head to that BY THE END OF THE YEAR.

Brad

 

[nunthewiser]

what would you say if i said intrest rates to hit 13% and over within 4 years ?

 

[skyQuake]

Futures pricing in 3.75% by March 09
4.25% by Nov 09

 

[chops_a_must]

what would you say if i said intrest rates to hit 13% and over within 4 years ?

Well... the target rate in the US is almost zero, and yet the mortgage rates have gone from about 6.5% to about 7.25% in about 4 days.

So, it's kind of irrelevant isn't it?

 

[robots]

hello,

and Zimbabweeee has inflation of 10000% so therefore we are going to get inflation of 10000% ?

thankyou
robots

 

[Smurf1976]

My best guess is the big tick. We go down to the bottom then up far higher than where we started. Draw it and it looks like a tick.

All just in my opinion of course. But I arranged my own finances (12 months ago) in the expectation that interest rates would fall somewhat then rise significantly. The only thing that's changed is I now think the fall will be a lot bigger and may last a bit longer than I was expecting 12 months ago.

 

[BradK]

what would you say if i said intrest rates to hit 13% and over within 4 years ?

I'd say, 'lucky I locked in for five years at 6% when I do later this year or early next year!'

Brad

 

[chops_a_must]

hello,

and Zimbabweeee has inflation of 10000% so therefore we are going to get inflation of 10000% ?

thankyou
robots

Lol, you are a deluded tool.

Banks don't source funding from Zimbabwe.

 

[robots]

hello,

another professor with all the knowledge after reading a few blogs

thankyou
robots

 

[BradK]

Lol, you are a deluded tool.

Mods???????????????????

 

[Garpal Gumnut]

It depends as usual.

I can see 2% by this time next year if all goes to s**t.

It certainly wont go up.

gg

 

[stocksontheblock]

Interest Rates Going Up???

It never ceases to amaze me the rubbish some of these analysts keep coming out with.

I have read this afternoon that JP Morgan are saying interest rates will go up 25bp next month.

Where do these hacks get this sort of rubbish from? Come on, you have got to be kidding me. Like all these funny-money outfits ramping something in the hope it might come true might just work in their favour, yet IR’s up next month?

Yeah right!!!

Anyone else think this is going to happen? Me, I have been saying it for about 2 months now, we won’t see another one before Jan 2010, with the faintest of chances Dec this yr, yet not banking on that one.

 

[gfresh]

One at least before the end of the year to take the heat out of the speculators and the melb & syd property markets.

So I don't disagree with them

 

[drsmith]

If our economy follows a nice, friendly recovery path then it's reasonable to expect the RBA cash target to double from present levels over the next few years.

 

[joeyr46]

If our economy follows a nice, friendly recovery path then it's reasonable to expect the RBA cash target to double from present levels over the next few years.

37 years of bull market and you expect a recovery after 18 mths of correction I think your taking too much notice of the media. Interest rates could go up a little as there is still demand in the system but when the next wave down takes hold they might well plummett to near zero like US (currently) or Japan several yaers ago

 

[Nyden]

37 years of bull market and you expect a recovery after 18 mths of correction I think your taking too much notice of the media. Interest rates could go up a little as there is still demand in the system but when the next wave down takes hold they might well plummett to near zero like US (currently) or Japan several yaers ago

37 years of bull market? What in gods name are you talking about? Sorry, but that's just stupid. Not one comment you've made there is valid.

 

[trainspotter]

UP ! When the Reserve Bank boss Glenn Stevens comes out and supports the existing Guvmnt stimulus policy and states "The current rate level was an emergency setting and that the RBA will tighten once the emergency has passed" you know that the only way interetst rates are heading is going to be up. Notice how he used the term "was" (as in the past tense) and not "is" (as in the present tense) Very Freudian IMO.