March 08 RBA Interest rate decision

[Mofra]

hhhhmmmm, I checked the M3 on the RBA's own website and it was running at 16% last year, hahahaha, suckers...

From Wikipedia

The Federal Reserve ceased publishing M3 statistics in March 2006, explaining that M3 did not appear to convey additional information about economic activity compared to M2, had not been used in determining economic policy, and that the costs to collect M3 data outweighed the benefits. Some of the data used to calculate M3 are still collected and published on a regular basis.

Am I the only person who finds this bolded sentence frightening? As the first serious signs of stagflation hit they reduce their disclosure levels?

 

[Julia]

Maybe, just maybe, raising the interest rates has no effect on inflation? It just seems it attacks those who can afford it least, and who are subjected to the most taxes when purchasing property. How much of our inflation rate is influenced by our discretionary spending anyway?

It's beginning to look as though you are quite right, Prospector.
That the continuing spending is being done by people on high incomes (e.g. members of the RBA!), whilst people on low and fixed incomes are really doing it tough with increased mortgage/rent plus hugely higher general cost of living with increases in food/electricity/water etc.

 

[Kimosabi]

It's beginning to look as though you are quite right, Prospector.
That the continuing spending is being done by people on high incomes (e.g. members of the RBA!), whilst people on low and fixed incomes are really doing it tough with increased mortgage/rent plus hugely higher general cost of living with increases in food/electricity/water etc.

Well, how else are you meant to transfer wealth from the poor and middle classes to the rich without them even realising...

 

[Bill M]

Economists say rate peak may be in sight

Economists say there are signs that interest rates may be nearing a peak after the Reserve Bank of Australia (RBA) delivered its widely anticipated rate rise on Tuesday.

Full Story Here

 

[ROE]

http://www.news.com.au/business/story/0,23636,23323416-462,00.html

so what Rudd going to do now? write them an angry letter like I said earlier ?

 

[MRC & Co]

Economists say rate peak may be in sight

Economists say there are signs that interest rates may be nearing a peak after the Reserve Bank of Australia (RBA) delivered its widely anticipated rate rise on Tuesday.

Full Story Here

I would have to agree.

 

[bvbfan]

Cash Rate Yield Curve and Implied Expectations of Changes to the Target Cash Rate for the next 18 months. from the ASX/SFE shows that odds are at 104% for a 25bp cut to 7% in June 09

http://www.asx.com.au/data/trt/ib_expectation_curve_graph.pdf

 

[tech/a]

I would have to agree.

Seems the RBA dont agree.

The RBA has since projected underlying inflation remaining at the top of or above the inflation target until mid-2010.

From the article tenderd.
Until we see a slow down in inflation figures---a weakening in employment figures,Wages stop expanding (Not likley),the spiral of goods and services toward outer space---expect more.

However she still expects a rate rise in May following the release of the March quarter consumer price index in late April.

Banks dont think so either they belt on a basis point or 2 of their own.

Nothing seen yet.

 

[Sir Burr]

Just got my letter today on the interest rate increase from my mortgage company. Up 0.35% to 8.95%.

Always only ever up'd it by the reserve bank amount over the past 10 years. First time ever, it has been more.

Geez, I really wish it had been lowered like Amazing Loans

Amazing Loans cuts rate to 39.9 per cent :22_yikes:

SB

 

[ROE]

Just got my letter today on the interest rate increase from my mortgage company. Up 0.35% to 8.95%.

Always only ever up'd it by the reserve bank amount over the past 10 years. First time ever, it has been more.

Geez, I really wish it had been lowered like Amazing Loans

Amazing Loans cuts rate to 39.9 per cent :22_yikes:

SB

There will be more rise in coming months independent of the RBA.
Banks are losing money on increase credit cost. There are only 2 solutions

1. Increase the rate and make it profitable so they can write new loans

2. If no profit can be made write no loan and dry up credit and that going to be real BAD ass for the economy.

so which one Kevin want to pick ? bad economy or higher interest rate

sometimes you just cant have both ...

with high rate people still have a job and can afford to pay something back, with bad economy people dont have a jobs and there goes everything ..their house, their cars and everything else they buy on credit.

the way I see it ... high rate going to stay for a while.

 

[Sir Burr]

the way I see it ... high rate going to stay for a while.

Yes and I see your smiling.

I'm also smiling as being a long only trader with a market filter all my capital is out of the market onto my home loan. The way I see it is I'm not paying interest on my home loan so is returning ~15+% if tax was included.

Being out of the market is a position, I find shorting too difficult so 15% isn't so bad is it?

SB