scoobydooathome

Does this mean that rates in OZ may be cut next time ???

Quote below,

''Interest rates will either fall or be steady ... we know they're more likely to be steady but now the Reserve Bank governor is looking for reasons to cut."

Cut the rates go go go !!!

What do you know guys ?

captaincook

Yeah they certainly seem to now be publicly considering this although I think the press are somewhat overdoing his comments - what he said was that if the external factors i.e us continues to bomb then oz cannot be immune for ever and they would have to cut. The futures market has already discounted a cut so wont have a huge effect.

He also said that the rise in the Oz dollar was not yet overdone and simply a correction of previous undervaluation. Plus the property market is still going great guns here and governer is very reluctant to fan the flames but would to prevent Oz going down with the US.

Wonder what the switch to European inflation target in UK apparently going to be announced tomorrow will do to pound. Stories in times and telegraph today. Surely this will result down the road in lower interest rates in uk so pound may soften ?

Rosy

Feeling around here and in the local press is that the Oz interest rates will remain steady for a while, then there is the possibility of an increase if consumer spending continues to rise...

Who knows??? No one.

Just try not to worry too much about it. At the end of the day, you just have to go with the exchange rate when you need to change your £££s. No use torturing yourself with the endless possibilities of what could have been or what might be...