Join our investing community

Cash Rate Rises By 25 Basis Points

Discussion in 'The Economy' started by Chris C, 3rd Nov, 2009.

  1. Chris C

    Chris C Well-Known Member

    Joined:
    2nd Apr, 2008
    Posts:
    1,327
    Location:
    Brisbane, QLD
    Looks like the RBA is reasonably bullish on the future prospects of Australia.
     
  2. lorrimer

    lorrimer Well-Known Member

    Joined:
    4th Jun, 2006
    Posts:
    193
    Location:
    Brisbane, Queensland

    I fail to see why they are in a such a rush to raise rates. I don't see inflation as being a problem for a least a year with the US and the UK economies still struggling.
    IMO the inflation figures on their own didn't warrant a rise, so I can only imagine they are trying to suppress house price growth. However this could also backfire as developers are likely to cut back on construction, thus reducing supply of new dwellings.
    The one thing I really don't understand is, why does Australia have to start with interest rates that are already about 3% higher than most other developed nations ?
    I thought the RBA were out of touch before, now I am even more convinced. Please don't refer me to any comments from economists backing the RBA's decision, because quite honestly I've been far more correct at predicting how things were likely to pan out than they have been over the past couple of years, unemployment to rise to 10% ???? I ask you.
    And no I've never studied economics, neither do I consider myself to be anywhere near as intelligent as those guys. So the question is how did they manage to get it so spectacually
    wrong?
    I have been amazed at how little opposition there has been in the press on this issue. The ANZ said it would be a bad idea as did Peter Switzer, but that's about it.
     
  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    RBA lifts rates by 25 basis points, more to come says economists

    RBA lifts rates by 25 basis points, more to come says economists | Lending Central | Your Mortgage News

     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    RBA may pause until February

    RBA may pause until February - ABC News (Australian Broadcasting Corporation)