Saw a guy from Bis Schrapnel on the Today show this morning predict interest rates will rise by 1% in the next 12 months, due to a shortage of trade workers and increasing wages, not sure if he meant building or all trades. He seems to think the 35% of the population that are home owners can handle the increase.
RoboHi Robo,
They were quoted in May SMH as saying “The forecaster has based its predictions on expectations the standard variable home loan rate will rise to as high as 9 per cent by the second half of next year, from 7.3 per cent now.”
It seems in 4 months they have significantly scaled their prediction back.
If anyone is worried about their interest rate exposure – three year fixed rates have recently come down. Three years of security of repayments may be significant SANF for some investors.
Derek
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http://www.pis.theinvestorsclub.com.au
0409 882 958I do not know why chanel 7 keeps giving BS as much exposure as they do after all they have never been right when it comes to interest rates. Most economists believe that rates in the medium term will go down not up
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Property Researcher and education seminars
Nigel Kibel | Property Know How
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The Today show is on nine not 7?
I guess with big predictions like that, if they are right they look like a genius, if they are wrong everyone just ignores it. They have a lot to gain if they are right, but no one will notice if they are wrong.
I saw them on Sunrise
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Property Researcher and education seminars
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
BIS has been predicting 9% interest rates in 2006 for the last 2-3 years. It’s been a VERY widely publicised prediction.
Their new prediction of a 6.5% rate for 2006 makes them look fools – I know I’m not the only one who HAS noticed that they’ve called it wrong by a long shot.
It certainly pays to follow these things over many years because I don’t have a clue as to which economist has had the best crystal ball for predicting interest rates – but I’ve now crossed BIS off my list of forecasters to watch.
cheers,
Carlin
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