When will we see a rate drop?

[Flying Fish]

Any guess what year?

 

[numbercruncher]

no sooner than 2010 unless there is massive economic upheval before then is my punt.

 

[Blank1979]

i agree - sort of - late 2009 or early 2010 will see a bit of a drop but not until the US stops borrowing $2 billion + per day.

 

[ROE]

Not until people slow down spending and borrowing
and with skill shortage, wages is just going to creep up
and people end up spending and borrowing more and drive up inflation.

and RBA will has no choice but rise rate again to bring people
in line.

I dont see a drop in sight until we have something similar to US sub-prime mortgage .. we may end up with a similar mortgage problems if rate rise a few more points.

 

[Happy]

Rate increase for me means that inflation is eating into my savings, but as consolation I have higher interest income, making it almost status quo if I did not have to pay tax on interest income.