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Loan Market: RBA moved too soon

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Australian Broker | 06 Oct 2009, 11:50 AM Agree 0
Loan Market Group has slammed the RBA for lifting interest rates today, saying it has put "a healthy housing market in jeopardy".
  • Planettelex | 07 Oct 2009, 02:01 PM Agree 0
    I think Brokernews was meant to say "too soon" rather than to soon(as I don''t think soon is a place in this country).

    Nevertheless, I do agree with Loan Market Group, with the FHOG decreasing, unemployment still high and the tougher lending guidelines we now are faced with, this will slow down the housing market once more.
    However the rate rise was probably inevitable with all the constant LIES in the media recently about the economy picking up, etc.
    The economy is not really turning around yet, the heamorrhaging has maybe slowed down just a little thats all.

  • FP | 07 Oct 2009, 05:29 PM Agree 0
    This is so hypocritical coming from Loan Market Group. In an article published back in 11 August 2009 (Mortgage Business), Loan Market Group tipped interest rates to rise in the coming months, and urged home owners to budget for up-coming rate rises. They knew back then that rate rises were likely to come to fruition because of market indicators. So I don''t understand why they should "slam" the RBA (or is this just Brokernews trying to sensationalize things). LMG even predicted that increments could be in 0.5 to 1.0 percent increases.
    I also find it hypocritical that LMG suggests that the RBA''s 0.25 increase "will create an expectation that rates will rise again rapidly", but in the same article they themselves are saying/suggesting the same thing! Go figure!
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