Interest rate increases?

[degrom]

So what is going to happen?

Is Mr Cullen going to increase the interest rates or not...

Views and opinions on the matter are all welcome!!!

[ManDownUnder]

So what is going to happen?

Is Mr Cullen going to increase the interest rates or not...

Views and opinions on the matter are all welcome!!!

Technically no - that'd be Bollard who does the dirty work but... yes... I fear.

Actually it's yes - confirmed...

[degrom]

Technically no - that'd be Bollard who does the dirty work but... yes... I fear.

Actually it's yes - confirmed...

LOL... Nice,who is gaining out of this?

Or should I ask what he is trying to attchive with this!!! (and is it working?)

[ManDownUnder]

LOL... Nice,who is gaining out of this?

Or should I ask what he is trying to attchive with this!!! (and is it working?)

He's a knob jockey with a single goal to keep inflation below 3%.

He just need s hug - COL!!!! hug the man - just till his eyes pop out and he shits himself ...

[Beemer]

Thank god we just refixed our mortgage at a lower rate than that!

[ManDownUnder]

Thank god we just refixed our mortgage at a lower rate than that!

Speak for yerself... bugger bugger bugger...!

[degrom]

So when does he beat inflation? (When the interest rates are at 15 or 20 %)

[cold comfort]

Does not make a lot of sense increasing mortgage suffering. Allowing banks to lend 100% mortgages (so greedy investors can leverage more rental properties) and continuing to allow non-residents to buy NZ land, pushing up prices are two other problem areas more in need of attention. Our beach house neighbour has just paid an obscene amount for their property and continues to live in the USA for 6mths of the year!

[Dave Lobster]

Why isn't there a law to stop foreigners owning property here?

[The Stranger:Me]

Or should I ask what he is trying to attchive with this!!! (and is it working?)

He is trying to rein in inflation.
That is his job and the only tool the govt has given him to do his job is interest rates. So I don't blame him. The govt could look at other options.

[Swoop]

Why isn't there a law to stop foreigners owning property here?

With the new immigration laws, permitting non-english speaking migrants' to buy citizenship, what do you think they will do to "invest" their 20 million???
Buy property, perhaps?

Good old labour, f*cking up again.

[The Stranger:Me]

So when does he beat inflation? (When the interest rates are at 15 or 20 %)

The higher the interest rates the more foreign money comes in to take advantage of the high rates. This creates demand for our dollar and pushes the value up. The higher our dollar is valued the more it hurts our exporters and causes things like unemployment etc as our manufacturers are unable to compete. Also the higher our dollar the cheaper imports get, this really doesn't help as it starts to undermine the interest rate rises i.e people tend to say "wow that new bike is cheap" and buy it anyway. Plus that doesn't help our balance of payments or our manufacturers if everyone is buying imported goods.

Another factor to consider is when is the next election? Even though he is in theory independent of the govt, Labour are not going to want to go into an election with increasing unemployment and people hurting from high interest rates. I'm sure they would rather see a small blow out in inflation.

In short, my bet is that he has gone as far as he will go before things really start to slide negatively.
But hey I could be wrong - it has happened before.

[degrom]

The higher the interest rates the more foreign money comes in to take advantage of the high rates. This creates demand for our dollar and pushes the value up. The higher our dollar is valued the more it hurts our exporters and causes things like unemployment etc as our manufacturers are unable to compete. Also the higher our dollar the cheaper imports get, this really doesn't help as it starts to undermine the interest rate rises i.e people tend to say "wow that new bike is cheap" and buy it anyway. Plus that doesn't help our balance of payments or our manufacturers if everyone is buying imported goods.

Another factor to consider is when is the next election? Even though he is in theory independent of the govt, Labour are not going to want to go into an election with increasing unemployment and people hurting from high interest rates. I'm sure they would rather see a small blow out in inflation.

In short, my bet is that he has gone as far as he will go before things really start to slide negatively.
But hey I could be wrong - it has happened before.

So do you think National is going to do a better job when the take over the government?

Or are they going to use our Kiwisaver accounts to buy more properties for them self's?

[yod]

dont care...i locked in 7.8% for five years about 18 months ago....

nuts to you mr bollard....

[The Stranger:Me]

So do you think National is going to do a better job when the take over the government?

Or are they going to use our Kiwisaver accounts to buy more properties for them self's?

Isn't National just more of the same?
Personally I believe a radical shift is needed or we just continue with the same old cycles we have had forever. But Kiwis being what they are, we aren't likely to see one, they will continue to vote for the status quo then moan about the status quo. It's a bit like the definition of stupidity - doing the same thing every day and expecting a different outcome. By that definition, Kiwis are stupid.
So No I doubt National will be any better in this respect.

Kiwisaver - my heads been in the sand on this one, I know nothing. Except in principal I tend to trust me with my money more than I trust the govt with my money.