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24/11/14

14:09

Post #: 14342333
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Originally posted by Justis ↑

RBA doesn't adjust interest rates based on what the FED rate is, it does so with the aim of maintaining the target rate of inflation at around 2.5-3%

At the moment there is indications that the inflation rate may be lower that the target rate and hence the possibility of a rate cut.

If/when inflation starts to go higher than the target rate, keep in mind that would mean the economy is strong and growing, the RBA will lift interest rates.

Like empror said it would rises in small increments, just as the rate cuts have been in small increments. With that people will adjust their spending accordingly, it's not as if we get a situation were all of a sudden peoples mortgage repayments go up by $100's overnight.

With that the prospect of interest rates get to over 10% is a long way off

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Justis, you heard the man...

"Stop clutching at straws and guessing, and try and follow the actual program. "

LOL
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