interest rate prediction, page-46

Ajaydee your 30/70 point is a little crude to say the least.

Higher mortgage repayments has an opportunity cost of
1. Not spending more on all products and services in the economy thereby mitigating economic growth.

2. Reducing the amount of TOTAL surplus income into super and non super assets whether they be cash,term deposits, property or shares.

3. Less investing ultimately leads to lower innovation and therefore reduces the prospects of productivity improvements which ultimately lead to raise living standards. Raised living standards are the result of doing more for less - think of the productivity improvements with the discovery of petroleum brought - how long did it take did it take 10 men to move a ton, now its the turn of a key. Or put another way less money gets funneled to Alzheimer’s research.

If you want higher interest rates because you're of an age where you want to preserve what you have and not grow what you have, then consider all the other still active tax paying citizens interested providing for your PBS.

Higher interest rates ultimately reduce the living standards for all.