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RBA could raise interest rates 8 times over 2 years, page-4

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moneyback

944 Posts.

28/06/17

20:11

Post #: 25548612
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Originally posted by Menta ↑

Contrary to popular misconception, central bankers do not set interest rates. The market does. As the market starts to re-price risk (ie. the risk of debt/mortgage default) bond rates are bid higher. We've seen the bottom of this historically low interest rate cycle which lured the most marginal borrowers into the market at the worst possible time. As rates rise on the pyramid of record high mortgage debt in Australia arrears and defaults will follow.

We've seen panic buying in Australian property over recent years fueled by a fear of missing out. We'll see panic selling over coming years fueled by a fear of losing everything.

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i guess your selling your family home then? Why wouldn't you if you were that sure.
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