jad n rich

More brilliant news for farmers, families and tradesmen.

http://www.theaustralian.news.com.au...5-1702,00.html


The lucky country, ummm

Ian & Sharon

What effect will this have on the exchange rate

DunRoaminTheUK

Some Australian friends at work told me this lunchtime that they expect the trend to continue. That's a bit worrying considering we are beginning the house build process?

renth

None. This rise, like tomorrow's Bank of England announcement was seen as a foregone conclusion and priced in a long time ago to the current exchange rate.

If the B of E doesn't raise rates tomorrow there will be a big effect on the rate in favour of the Aussie Dollar.

jad n rich

Australia had the highest interest rates in the western world even before the latest rise, so aussie dollar should look strong for investors, but last time rates went up some other data come out and the dollar went down. Who knows, crystal ball time.

But yes we are told to expect more rate rises all gone a bit mental with farmers in drought, and the country bringing in more and more tradespeople when the housing market is going backward

Ian & Sharon

Thought it was NZ, I'll be exchanging NZ$ for OZ$.

renth

Yes 50:50 chance of another rise in Feb. No good for mortgage holders but great news if, like me, you've been priced out of the housing market and have the proceeds of a UK house sale sitting in a savings account.

jad n rich

We had some in bank of WA while we built at 6.6% interest, pretty good but bloody tax takes a big chunk out of it

renth

Not so much if you open it in the name of your non-working spouse

Amazulu

How do they know? A crystal ball does not work.

jad n rich

They will probably dock the Family tax benefit instead

renth

Correct, I've looked in to all of the different permutations

chels

Now, I don't claim to be an economist or a crystal ball reader. But things are starting to look a bit hairy. I've heard people talk about interest rates continuing climb to 10%, the end of the commodities boom, drought, rising unemployment... makes me wonder if we do want to go ahead with buying a house and being stuck here if the economy does go belly-up

renth

The irony is a .25% rise will probably have little effect in WA yet seriously stuff up many in the Eastern States.

We have a 2 speed economy with interest rates affecting all.

jad n rich

Dont whack it in the kids names they get highest rate of tax after something like $600 :scared:

Do you have a cat