Originally Posted By: Al
Oh thanks. Shannow..made a killing on your currency yesterday 2.55% Thanks. How does your prospect for keeping rates up look? Are you guys worried more about inflation (Raise rates) or Downturn in the economy (Lower rates)? I'm guessing you guys will drop rates which means I need to get out. Up until yesterday I was down about 1.5% since Oct on your fxa. Might need to take my small profit and run. You never go broke taking a profit.
IMO, rates will stay the same for a while.
My shopping trolley and petrol purchases show the official inflation figures to be a crock (although we may need a new TV soon).
Reserve Bank affirmed that after 10 or 11 interest rate hikes in a row, this month they didn't increase, as they have slowed the economy somewhat.
Banks are increasing rates independently of the reserve at present also.
But in 2 months time, there will be tax cuts for middle income earners ($30-$60k) of a grand per year...I don't think that will help inflation one iota.