I guess the title asks it all? How often can we expect the interest rates might go up? (every month? Two?,etc) Cheers.
Oh Misty,
[lmao][lmao][lmao]I just love this question !!!
Well that depends on how the member’s feel at the time of their meeting; if they got lucky the night before, rates should remain the same, but if not, we are the ones they are going to f… [worried][worried][worried]
No seriously, it depends on what is happening in our economic market as a whole; inflation, unemployment etc etc etc.
Jo
Misty,
The Reserve Bank meets every month, so theoretically they could rise every month. Then again, theoretically, they call fall every month [cap] They’ree meeting again this or next wek (can’t remember when) and from what I’ve read (in the weekend Australian Financial Review), the RB is unlikely to raise rates this month, but there *may* be a rise in june or july. Go figure, it’s all speculation, but it helps to read a lot about what economists *think* might happen, so we can plan accordingly.
Certainly, the RE market has flattened *somewhat* (due to 2 IR rises and taxation changes), so there will be less pressure on the RB to increase rates to dampen spending. Keep an eye on concumer spending too (personal loans and credit cards) because that is also an indicator of the RB trying to slow down spending.
kay henry
Hi Kay,
Reserve Bank board meets on the first Tuesday of the month and any announcements of changes are made on Wednesday usually without much in the way of comment.
This week is a little unusual as the board will also give a March quarter report which by default and because of timing may give a more definitive indication of interest rate moves.
By way of comparison the US Reserve can meet at any time – and my prediction – when Greenspan increases we will follow accordingly.
I fixed one loan in August last year 3 years @ 6.06% and have just fixed another at ~6.7% also for three years (I am yet to see the paperwork on this one – so number may be out a little)
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Gee Monopoly,i dont think it was such a silly qu. that i needed ridiculing! Thanks Kay,that was a very informative & much appreciated answer.
Originally posted by Misty1:Gee Monopoly,i dont think it was such a silly qu. that i needed ridiculing! Thanks Kay,that was a very informative & much appreciated answer.
Misty,
Sorry if you took it to heart…my comment was not intended as a form of ridicule. I was just trying to see the lighter side of what can be a gloomy outcome (i.e. interest rate hikes).
My second paragraph (albeit not real useful) half answered your question, just not giving actual specific number of times.
Please excuse my (poor, and obviously tasteless) attempt at wit. [blush2]
Jo
Something else to think about – the ‘convention’ right now is 0.25% (or 25 basis point) changes in interest rates.
There’s nothing preventing the RBA from choosing a different amount – the convention used to be 1% (100 basis points) and then became 0.5% (50 basis points), now 0.25%
In the future we could see the RBA choosing to return to larger changes (unlikely right now – the fine tuning approach seems to be working nicely) or making smaller changes – 0.1% or 10 basis points perhaps
Oh – and monthly meetings are a convention too – nothing stops the RBA from making changes as often or rarely as they like
I’d anticipate it would take a far more major event than a major terrorist strike, a recession or a war to have then change this however (based on recent experience).Cheers,
Aceyducey
Is the question how often or how much can you afford, if you are positive and this is what this site is all about who cares??????????
residential,
When you ask questions about RE, people don;t say “who cares?” Interest rates have, in the past, been 17%. Would your investment still be positive at such IR’s? Well, possibly, if you put your rent up every time there’s an IP rise…
I am not sure why you answer a leigitimate query someone has on here with “who cares”.
kay henry
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