Tuesday, Nov 03, 2009

What goes down must come up again

The Australian: RBA lifts interest rates by 25 basis points to 3.5pc

THE Reserve Bank has delivered a second interest rate rise in as many months, as it attempts to moderate the economic recovery.
The decision to lift the official cash rate by 25 basis points to 3.5 per cent is expected to add about $50 a month to the repayments of an average home mortgage.
The increase, which followed the RBA's move to raise rates in October, was widely expected by financial markets and economists, especially after house prices rose by 4.2 per cent in the September quarter.

Posted by monty @ 07:20 AM (1136 views)
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7 Comments

1. crunchy said...

Good on ya mate.

Now how many shrimps to throw on the barbie?

Pass me that limey sauce Sheila, I'm starving!

Tuesday, November 3, 2009 09:04AM Report Comment
 

2. a saver said...

"The RBA has warned on numerous occasions it is concerned a price bubble in the housing market could emerge in Australia, given that the prices in the majority of capital cities have not fallen as sharply as prices in major overseas cities."
Nice to see there's a responsible attitude to HPI in some countries.

Tuesday, November 3, 2009 09:10AM Report Comment
 

3. Ndg said...

They just joined in with the rest of us a bit too early.

Tuesday, November 3, 2009 09:16AM Report Comment
 

4. luckyjim said...

They've already had a bubble though. Sydney is more expensive than London. People still seem to think you can go down there and get a house with a pool for the price of a victorian semi. You can't. And with interest rates boosting the AUD$ those days seem a long way off now.

Tuesday, November 3, 2009 12:41PM Report Comment
 

5. timmy t said...

luckyjim - I agree with you; they are locking the stable door after the horse has bolted.... but to their credit, at least they are locking it!

Tuesday, November 3, 2009 12:54PM Report Comment
 

6. rumble said...

Aus hpi

Tuesday, November 3, 2009 01:17PM Report Comment
 

7. Bubbletrouble said...

1. possibly oz collective memory of the last property boom is much better than uks.
2. Maybe something else cultural going on. UK likes to protect City seeing it as important part of economy (I could even see that in last night's Yes Prime minister - 1989!) and that (to me) means being reckless with the economy. UK also likes idea of home ownership and this seems to get much priority. Oz possibly thinks that as we sit on loads of minerals, our future is assured so we can put the brake on things that would discourage commerce, greed, generation of money etc if it looks shakey since we can always dig some more money out of the ground. But UK seems to look at Tokyo and NY and think we need to beat them at being best City so sacred cow City first since UK economy hasn’t so much else going for it.
3. In oz you can always build another house on a farm 2 mins further out of the city (so defeating any homeless or capacity arguments that might fly in uk)
4. And, of course, possibly the biggest reason is recent change in govt means the govt doesn’t need to care what happens short term - which is exactly why I think the tories should be allowed in in april. so they can get on with being nasty for a while and correct the bubbles and weather all the pain and by the time they need to worry about the electorate it'll all be a forgotten memory and on the up again.

Tuesday, November 3, 2009 02:08PM Report Comment
 

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