Interest rate rise on Melbourne cup day?

[Lefteee]

Odds on. All measures of inflation are currently easing with headline inflation running at only 1.3% but this is unlikely to be enough for the RBA.

House prices are rising in Sydney (though stagnating or falling slightly in most other places) so the RBA will use it's only - and devastating and totally indisciminate - weapon. That's the thing about monetary policy - you have to basically take a battle axe and hack your way through rows of innocent people (the most vulnerable in society, low income earners who are in no position to inflate house prices or most other things), chopping them to bloody meat in order to inflict a few cuts and bruises on the guilty.

Let's see what tomorrow brings - it's unlikely to be anything other than a rise I think.

[boxy]

It's tradition, isn't it?

[Lefteee]

So will you be wearing your fascinator tomorrow boxy?

[Hebe]

It was the only sure bet today.

[Lefteee]

Yes it was, though it was .25% instead of the .50% that many were expecting.

The amazing man without a personality - Glen Stevens - was hailed as a hero around the world last month for being the first central banker to raise interest rates. He's probably never had so much attention in his life. This second one will probably be so much of a kick that he will be able to dispense with the viagra.

[Rainbow Moonlight]

Interesting thing about this decision is it was made about the same time that wqe have started to see retail sales figures fall. I hope it isn't too much too soon.

[boxy]

The Torah and Talmud encourage the granting of loans, but only if it doesn't involve interest, with certain exceptions. Charging interest is classed in the Book of Ezekiel as being among the worst sins, and is forbidden according to Jewish law.

You've gotta wonder sometimes, about the house of cards that many people set up. Where the banks actually own pretty much everything they have, and they expect times to continue to be good forever, as they continue to refinance into bigger and bigger loans, seemingly forever... and then there are "the Jews", notorious for being canny in business, yet with a mistrust for usury so deep that it is considered a sin.

Neither a lender, or borrower, be.

[Rainbow Moonlight]

I think most of the banks here are still recording good profits. So yeah- do they "need" to pass on the rate increases- they say it relates to the costs of funds to them, but if they are still maing massive profits mayeb they do not need to do so.

[Lefteee]

RBA might be jumping the gun.

[Lefteee]

So all standard measures of inflation are currently easing - not quick enough for the RBA though.

they expect times to continue to be good forever, as they continue to refinance into bigger and bigger loans, seemingly forever...

I think you are right about the existence of this particular cohort Boxy.