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Interest rates - up or down?
So where does everyone think rates are going to go from here? Up, or down?
Personally I think we're headed up, maybe a couple more rises this year.
JFK
Personally I think we're headed up, maybe a couple more rises this year.
JFK
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Replies to This Discussion
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Permalink Reply by Warren on -
I'm with you JFK, but I think there will only be a slight rise. With a slowing economy and people already tightening their belts, coupled with the banks exerting their own monetary policy by raising rates (blaming it on sub-prime) I think the RBA may hold back a bit. So my guess is one more rate rise this year.
Warren
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Permalink Reply by Matthew Reader on -
No change for the rest of the year
Matt
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Permalink Reply by Natalie Bochenski on -
Oh, sheesh!
I already spend close to 50% of my net income on my mortgage. Since buying my home in July 2006, my repayments have gone up $120 a fortnight. It's a fair whack!
I don't mean to whinge too much, as I am very grateful to be where I am, and am still capable of paying. I only hope they don't have too many more rises after these predicted two!
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Permalink Reply by JeffK on -
Hi GirlClumsy,
It is by no means certain that rates are going to go up! Just speculating on whether or not they will.
I'm with you - I hope they don't go up because I'll be out of pocket with mortgage repayments BUT and this is quite a big BUT (no pun intended) if rates aren't increased by the RBA to curb Australia's ever-increasing inflation, we'll be out of pocket even more!!!
Countries in South America are all experiencing inflation in the vicinity of 20%, with some having seen food prices increase by 200% over the past couple of years - so it's something that the RBA needs to try to keep under control. But inflation, and the economy on the whole, is a complicated and disobedient beast, and is notoriously hard to get it to perform tricks...
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Permalink Reply by John McVey on -
Hi All,
Well, what can I add? Whatever happens happens and I guess we'll just have to "Cop It Sweet".
How's that for sitting on the fence?
Cheers.
John.
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Permalink Reply by Miffy on -
Hi Warren - what you say makes sense...that banks have been increasing interest rates anyway, whether the Reserve Bank does or not, so this should help keep inflation at bay. Hopefully rates don't go up... I think they will though...
Miffy
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Permalink Reply by JeffK on
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This article highlights just how out of control inflation is getting!
Inflation gauge rising 'at fastest rate'
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Permalink Reply by Matthew Reader on
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Hmm, this article makes me want to revise my earlier comment "no more rises this year"...
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Permalink Reply by Pete McMurphy on -
We are in for some dark times if the RBA doesn't get inflation under control. Does anyone remember the recession we had to have???
I reckon there'll be two-three more this year. Maybe a 50 basis point hike in June, given the latest figures.
Macca
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Permalink Reply by Natalie Bochenski on
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Excellent discussion guys. We've got the interest rate mojo swinging!
JeffK, you're right - inflation is the bigger beast. I think when it comes down to it, I'd rather pay an extra $20 to $50 a fortnight on my mortgage than continually rising grocery prices. Not that it matters much, but at least it's going into my house!
What Warren says though is certainly true - we have to cop it sweet. World circumstances at the moment dictate ever rising costs across the board. What I need to help me out is a pay rise; but of course, that would fuel spending, fuelling inflation etc etc. It's the cycle.
I think the hardest thing about becoming an adult (which I've really been trying to avoid), is realising you can't have everything you want with the money you earn, and that you need to prioritise. Even Warren Buffett seems to know the lesson of that, judging by the fact he's giving all his billions to charity!
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Permalink Reply by Manish Dev on -
Up, up and away. 3 more this year.
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