Well guys in case you didn’t hear the RBA increased the official Cash Rate this morning by 25 basis points.
If BillfromOZ would like to square up our wager that they wouldn’t increase them 50 basis points a cheque or postal order would do nicely. Alternatively a brown paper bag is also acceptable.
Who is for double or quits in January
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
I’ll bet a million bucks that there will be no rate increase in January!
]Now, February, I won’t take you up on that one!!
Cheers
MelI’m with Mel on this one. In fact I’ll bet everything I own on no rate increase in January.
Regards
Marty
Im not putting any property up for bets, but i do bet the rates will go up in January. Im still betting at the end of 2006, that some lenders and banks will be or near at 10%
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”Come on Mel, lets fess up. The Reserve Bank does not meet again until February, so logically there can be no rate increase until at least then.
Marty
sis, when in January do you think the rates will go up?
Cheers
MelHi Melbear,
either mid to late January, but if not i wouldnt be surprise by if the banks begin talking and sneaking up the rates another .25% by then. Its kinda obvious if the RBA are talking about interest rates rising the banks will begin to step in and will begin fixing interest rates at a higher rate to protect them selves, this also applies to the variable rates too.
Another rate rise i see.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”Marty, you spoiled the fun!! I did have that in my post, but then I thought I would ‘mess’ with sis a little bit.
Sis, read maximus’s post. We are only talking about the ‘official’ cash rate. There will be NO rate rise in January. The RBA board meets on the first Tuesday of every month, except for January. Any rate rise is announced on the next day. There is NO other time that these decisions are made.
Cheers
Mellol very funny and deceptive you are Melbear,
lol ill be reading your post more careful next time.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”Mel
Thanks for letting the RBA cat out fo the bag I had intended to clean up.
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Hey Richard, don’t blame me, maximus spilled the beans first.
Besides, I read your post as you were offering the odds that there would be a rate rise in January, which is what I was willing to bet on.
Cheers
MelMel
No as I took the money off Bill i was offering odds on there not being another increase.
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Don’t forget team that the banks can move the fixed rates up and down independent of the RBA announcements. This recent fixed rate rise was in expectation of todays announcement.
I do think fixed rates are nowhere near as attractive as they were a month or so ago.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
hey richard how much did you make from Billfromoz?
SIS 10% by 2006? anything is possible, but i’d expect rates to be about where they are now. we might even see them below where they are now, with inflation very low it would kill the economy to have expensive money, especially as many are expecting a tougher time ahead in the about 18 months.
westanwestan: It was a bottle of red from memory ?? [?]
Cheers,
Paul…“I want to be rich, and stupidly happy – so far i’ve only managed to achieve the stupid part…”
Any bets on the RBNZ rates due tomorrow ?? as nz is now lower than Aussie’s. When was the last time that happened [?]
Lazyboy whats the expectation in NZ[?]
westanMy pick is that they will leave it at 5% untill end of Jan, But with the Aussie going another .25 it will put even more pressure on . Inflation is not a problem at present, so the only reason they will lift it is to slow the property market down
Westan,
Had any more thoughts on “S….” and “W….” in NZ.Many people still remember the >15% interest rates of the late 1980’s, but it is unlikley that rates will ever go that high again due to de-regulation of the banking industry.
Previously, the major banks added about 7% to the official rate, but this has now come down to about 2%, due to substantial competition from other lenders (Thanks Aussie!)
For mortgage rates to reach 10%, the Reserve bank will need to lift the cash rate to 8%, or 60% above what it is now.
The RBA’s primary reason for the current increases seems to be to reduce investor spending in real estate. This is already happening.
I’d also suggest that a desire to curb the annual credit splurge for Xmas had a part in the latest rise as well (two birds with one stone).
With continuing long term low interest rates in the US, it is unlikely Australia will lift it’s rate much highter.
Lenders will not lift their rates too much further above the RBA rate unless property becomes a riskier investment (ie too many investors caught out in the curent boom defaulting on their loans).
All the above comes from press reports and published articles easilly available on the web, and is not necessarily my own view.
IMO therefore, rate rises of more that 0.5% are unlikely, and I would guess that they may even come down again within 12 months, assuming the level of investor spending in real estate decreases substantiatlly in the coming months.
Dino
“If you don’t know where you are going, every road will take you there.”
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