Interest Rates in Australia - A Short Rant

Akhenaten

Heretic Pharaoh
Akhenaten
Joined
Nov 2, 2007
Messages
29,692
Location
Pi-Broadford, Australia
Today the Reserve Bank announced a .25% increase in the standard cash rate, taking it to 3.25%

And what do virtually all the media report?

How tough it's going to be for home loan borrowers!

Well I have a news flash of my own. The poor buggers (me) that have been providing the money for the cheap loans that have prevailed for the last few years aren't exactly crying about this.

So Mr and Mrs Newlywed can't buy the Urban Mega-Grotesquery that they had their widdle hearts set on. Tough. Learn to live within your means like I have.

I'll be happy when we hit double digits frankly.

YMMV greatly if you're a borrower. Sorry about that, but this is my rant, although it's over now.


Thank you for reading.
 
I don't think you've had the cash rate in double figures since about 1992 so you might have a bit more of a wait.

Last I checked, you can lend to the gummint at > 5% gross (5 year bond).

The non-Aussie media are jealous that you don't have the quite same unemployment and fiscal debt nightmares.
 
I'm not quite with with you there Pharaoh as I have a mortgage. Inflation is well and truly under control and I just can't see the justification in a rate rise at all.
 
Central banks have to stamp on optimism and greed these days, not to mention warding off "asset bubbles". Your stock market has already soared to levels nobody believed it would plummet to two short years ago 45% above the March trough.
 
lionking said:
I'm not quite with you there Pharaoh as I have a mortgage. Inflation is well and truly under control and I just can't see the justification in a rate rise at all.
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We paid our mortgage off many years ago and carefully invested our savings, only to watch them shrink for two decades.

I can see justification in raising interest rates just to keep people like me from withdrawing our money from the economy altogether and taking the more profitable option of stuffing it in a mattress.

But my rant was mainly against the biased, emotive and hyperbolic media reportage, not against the needs of the genuine battlers.

My apologies, and my sincerest sympathetic thoughts, to those adversely affected by this.


Cheers,

Dave the Capitalist
 
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Akhenaten said:
Today the Reserve Bank announced a .25% increase in the standard cash rate, taking it to 3.25%

And what do virtually all the media report?

How tough it's going to be for home loan borrowers!

Well I have a news flash of my own. The poor buggers (me) that have been providing the money for the cheap loans that have prevailed for the last few years aren't exactly crying about this.

So Mr and Mrs Newlywed can't buy the Urban Mega-Grotesquery that they had their widdle hearts set on. Tough. Learn to live within your means like I have.

I'll be happy when we hit double digits frankly.

YMMV greatly if you're a borrower. Sorry about that, but this is my rant, although it's over now.


Thank you for reading.
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Amen! It does seem on the face of it that most gov't policy is designed to protect people who manage their money irresponsibly and punish those who actually take cautious decisions with their money.
 
Francesca R said:
I don't think you've had the cash rate in double figures since about 1992 so you might have a bit more of a wait.

Last I checked, you can lend to the gummint at > 5% gross (5 year bond).

The non-Aussie media are jealous that you don't have the quite same unemployment and fiscal debt nightmares.
Click to expand...


Wildy said:
You can?
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You can do better than 5% in other areas, but it's more like work than when I was at work. Me = NFI. I have too many important heretical things to do for that.


Cheers Cobbers.
 
Last of the Fraggles said:
Amen! It does seem on the face of it that most gov't policy is designed to protect people who manage their money irresponsibly and punish those who actually take cautious decisions with their money.
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Absotively posolutely, but I say again that I do feel the pain of the genuine battlers, and sympathise with the hard-working backbone of my country, the vertebrae of which consist of many, many lionkings.
 
Hardly. Can't you hear all those factory gates clanging shut for the last time because they can't meet payroll what with the extra 25 bpts cost of credit--that you deride as bringing insufficient interest pouring into your savings account? It's grim down under.
 
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Francesca R said:
Hardly. Can't you hear all those factory gates clanging shut for the last time because they can't meet payroll what with the extra 25 bpts cost of credit--that you deride as bringing insufficient interest pouring into your savings account? It's grim down under.
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My complaint is against the media treatment of the rise. I'm sorry I wasn't more clear about this.

As for the factory gates clanging shut, if that were likely, then the rise wouldn't have occurred. I'm stupid, I know, but I actually trust my Government.
 
I need an emoticon for the kind of smirk a Kiwi makes when, after fooling an Aussie, gets told she could be an "honorary one".
 
Francesca R said:
I need an emoticon for the kind of smirk a Kiwi makes when, after fooling an Aussie, gets told she could be an "honorary one".
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A simple :NEWZEALAND: wud huv dun, buhtch. ;)


Damien Evans said:
You already are one then.:D
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Yeah, although living in Pomgolia is jeopardising her citizenship.


NoZed Avenger said:
/averts eyes from ensuing bloodshed
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Aotearoa is home to the Māori, some of whom Francesca may know, and they're just across the dtch. I choose to behave myself.
 
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