Discussion in 'The Economy' started by Chris C, 3rd Nov, 2009.
Looks like the RBA is reasonably bullish on the future prospects of Australia.
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
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.
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
RBA may pause until February
RBA may pause until February - ABC News (Australian Broadcasting Corporation)
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