Borrowers will need to brace themselves for a raft of rate rises next year as the economy strengthens according to a former senior Reserve Bank economist. Paul Bloxham, the newly appointed HSBC chief economist for Australia and New Zealand has predicted the RBA will bump up the official cash rate by 125 basis points by the end of next year. Bloxham should know – prior to his new appointment on Monday, he was a senior Reserve Bank economist and had worked for the central bank for 12 years.
Bloxham predictions match that of a recent Goldman Sachs report predicting rates will rise 100 basis points in the next year, with hikes possibly starting as soon as next month.
» Interest rate bombshell – Business Spectator, 21st September 2010.
» Australia May Resume Raising Interest Rates in November, Goldman Says – 3rd September 2010.
According to the News.com.au, he is quoted as saying they will actually raise rates by 125 points, see article :
http://www.news.com.au/money/interest-rates/five-rate-rises-on-the-way-insider/story-e6frfmn0-1225927627809?area=business
So should be a happy new year for all those who bought recently.
I hope the interest rates do increase at it is about time those of us who have been financially responsible get a return. Why should the irresponsible be rewarded for their poor planning?
Well Well Well, let the good news keep rolling,
RBA has released a paper during it’s Sept review of rates stating that there is no housing bubble in Australia and that prices are in fact rather flat……
http://www.businessspectator.com.au/bs.nsf/Article/RBA-plays-down-housing-bubble-report-pd20100923-9JSVV?OpenDocument&src=hp5&src=amm
Next month they plan on releasing another paper proclaiming that the world is in fact flat, just watch out when you get close to those edges ok?
It is definitely frustrating watching the economic events unfold now that I am aware of how crazy the policies are that prop up this mess.
The show Overdose on ABCs 4 corners is good reference.
http://www.youtube.com/watch?v=m6FNYvC4uyM
I makes me realise that patience is a virtue and this is how people must have felt when they had an feeling that the great depression was coming.