Australian (ASX) Stock Market Forum

Will rates rise?

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27 November 2009
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Cmon - cards on the table. Who thinks the rates will rise on Tuesday?

I am hoping they wont, purely from a selfish point of view. But regardless if they dont raise them on Tuesday they will in April.

Im going with no.
 
I think we will be trending upwards for some time yet, how ever i think we may pause here for a few more months.

But you know what, when it comes to picking short term movements I am terrible, So don't listen to a thing I say.
 
The best way is to look at what the economists say. It will be the opposite.
 
For personal reasons I hope yes, 0.25. I don't have borrowings. Markets rates follow similar movements. Hybrids are my best performing holdings so far.
 
Cmon - cards on the table. Who thinks the rates will rise on Tuesday?

I am hoping they wont, purely from a selfish point of view. But regardless if they dont raise them on Tuesday they will in April.

Im going with no.

I think they will and purely from a selfish point of view I hope they do as I am a fixed interest securities investor too.:D
 
Don't raise rates enough and we have a bubble economy.

Raise them too much and the economy is crushed.

The critical question is whether their's a middle ground.
 
I have a strong feeling the RBA will put interest rates down within the next few months. I can't see them going up any time soon.
 
I have a strong feeling the RBA will put interest rates down within the next few months. I can't see them going up any time soon.

Really? Perhaps you might explain the reasons behind such a suggestion?
 
No one picked the 0% increase last month. Reckon 0.25 is a sure thing, but who is to say the banks wont add a little to it as well.:mad:

Being an election year Krudd might try to put a foot on Stevens neck after this month.
 
Suitcase number 0.25 please Andrew.

(I'm going with the peloton this month. Up by 0.25%.)
 
The interest rate rises/falls are supposed to be based on the basket of goodies that determines inflation. Not the bleeding rises in property prices. This increase, on the basis of trying to reign in housing price increases, is just another example of a regulatory body loosing sight of it's charter and stepping into areas it should keep the fark out off.
The people this will impact on most are those that already have mortgages. This will reduce the amount of money circulating within the economy (at a time the economy needs stimulus), will impact on new building projects and will have a negative impact on the economy going forward (where the inflation rate does not warrant it).
At this point I begin to wonder if the Reserve Bank feels it has an obligation to take over where John Howard left off.
 
Nulla Nulla,

Why aren't rents and house price increases included in the basket of goodies?

How does high house prices help greater society?

This will reduce the amount of money circulating within the economy

Doesn't this also preclude the fact that high house prices lockup capital anyway.

What do you want, historically low IR's forever?

Don't see ya complaining that house prices went up >10% last year. Use some of you new found equity if things get tough.

IR's to the roof, go savers.

Cheers
 
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