Interest rates - where are they heading?

[skyQuake]

What specific investments did you make in response to that rate decrease?

Buy SPI

 

[persistentone]

Buy SPI

You invested in Spitfire Resources, a maganese exploration company, as a way to exploit a move in the 90 day RBA rate? What?

 

[OzWaveGuy]

Looking at the daily 90 day rate data for the last 3 years, the RBA's cash rate target has lagged the 90 day rate by an average of 0.18%.

As of the 1st of Dec with the interest rate target at 3.75%, that lag is 0.27% which is still higher v's the average lag - implying the RBA could raise rates again should the 90 bill rate climb only a little higher into the next RBA meeting.

And for those that are wondering - Yes, I do have better things to do :

 

[skyQuake]

You invested in Spitfire Resources, a maganese exploration company, as a way to exploit a move in the 90 day RBA rate? What?

lol as in the index futures - SPI 200

It shot up like crazy, but you had a few seconds to get on!
Pity we probably wont see stuff like that for a long time

 

[trainspotter]

RBA in all their wisdom have raised interest rates by another .25%. Strangle , Choke, Gurgle, Smother, Drown, Suffocate the Aussie Battler.

 

[coffee_snob]

Good if you have got money invested in term deposits

BAD if you have a home loan!

 

[drsmith]

The final paragraph in the RBA's media release would suggest there's more to come.

Interest rates to most borrowers nonetheless have been somewhat lower than average. The Board judges that with growth likely to be around trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average. Today’s decision is a further step in that process.

http://www.rba.gov.au/media-releases/2010/mr-10-06.html

 

[newbie trader]

Do you think it is interesting that the Commonwealth raised their IR 30minutes after the announcement? Or is this not unusual? Apparently they dont think our economy will double dip and will stay strong now and that this raise is a show of 'strength' / 'stability'.

 

[Trembling Hand]

Do you think it is interesting that the Commonwealth raised their IR 30minutes after the announcement? Or is this not unusual?

?

Its not like they wait until an announcement and then think about what they should do.

 

[dutchie]

Do you think it is interesting that the Commonwealth raised their IR 30minutes after the announcement? Or is this not unusual? Apparently they dont think our economy will double dip and will stay strong now and that this raise is a show of 'strength' / 'stability'.

They (CBA) don't lower them as quick!!

That's what you get when you have a monopoly.

 

[newbie trader]

?

Its not like they wait until an announcement and then think about what they should do.

Well then why dont they all just raise them right after?

 

[Trembling Hand]

Well then why dont they all just raise them right after?

Because its a big conspiracy. What they do is decide before each announcement who will go first but thats only after they consult the pope and pay the Freemasons their keep as well. They do this in a secret meeting place in a tunnel deep underground just outside Davos Switz. Thats also where they decide the world cup, the price of oil & who gets to sell arms to Africa.

 

[satanoperca]

Because its a big conspiracy. What they do is decide before each announcement who will go first but thats only after they consult the pope and pay the Freemasons their keep as well. They do this in a secret meeting place in a tunnel deep underground just outside Davos Switz. Thats also where they decide the world cup, the price of oil & who gets to sell arms to Africa.

Finally it all makes sense, always thought there was something fishy about the four pillars and the RBA.

 

[trainspotter]

Banks with interest rates are like panties on a woman. Quick to pull up but slow to come down.

 

[Largesse]

give this man a medal, and a beer

 

[drsmith]

The banks probably decided beforehand to move interest rates in line with the RBA so the decision this time was easy to make.

 

[Smurf1976]

RBA in all their wisdom have raised interest rates by another .25%. Strangle , Choke, Gurgle, Smother, Drown, Suffocate the Aussie Battler.

Ouch with the cartoon!

Just got two mice yesterday in a nice fancy cage. Now I just have to work out how to get them to be a bit more brave - they hide in their little mouse house as soon as anyone comes near at the moment.

 

[Julia]

RBA in all their wisdom have raised interest rates by another .25%. Strangle , Choke, Gurgle, Smother, Drown, Suffocate the Aussie Battler.

That's pretty silly, trainspotter. Rates have been extraordinarily low for some time. You can't reasonably expect them to stay there.
It might restore some sense of proportion if you consider that I and many others were a couple of decades ago paying 22% on mortgage on an IP.

Every time there's a change in interest rates, it's only ever reported from the standpoint of the borrowers. Might be nice to occasionally focus on those who have actually made the effort to save.

 

[cutz]

RBA in all their wisdom have raised interest rates by another .25%. Strangle , Choke, Gurgle, Smother, Drown, Suffocate the Aussie Battler.

I'm curious,

Which battler are you talking about, the one geared to the max with a string of IPs or the one with cash in the bank getting SFA in a term deposit, paying tax on it to rub salt into the wound.

 

[SmellyTerror]

But... my entire investment strategy and financial future is dependent on another massive and unsustainable property bubble! What will I do now??? :shake: