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Brokers: Rate speculation "fuelled by media"

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Australian Broker | 09 Oct 2009, 07:47 AM Agree 0
Brokers reacted to yesterday's bank interest rate rises and stronger than expected employment figures with cautious optimism. There was anger, however, at the role the mainstream media had played in stirring up public concern.
  • Peter | 09 Oct 2009, 08:58 AM Agree 0
    in relation to the article Rate speculation "fuelled by media" as a Financial Planner (and Mortage Broker), we have been dealing with the media in our industry for the last two years regarding "market Crash".

    I think mortgage brokers shouldn''t be concerned over rate rises if they have a great relationship with thir clients.
  • John C | 09 Oct 2009, 09:12 AM Agree 0
    I agree that the RBA has been too quick. They are relying on historical figures which have been artificially fuelled by the Rudd Government stimulus package. With the FHOG Extensions being removed by the Government, no more $900 handouts for the general economy, with money for loans in short supply for business, which means that businesses can''t grow, Business Investment Allowance being removed in December this year, with the rest of the world still in recession.... In my view the ability for Australia to recover from this recession has been put back by months even a year... I think the RBA should have waited until 2010 to put brakes on if it was warranted. It will be very interesting to see what Christmas trading is like this year.
  • Derek Miles | 09 Oct 2009, 09:52 AM Agree 0
    When talking to clients I use this great little fixed vs variable rate simulator to demonstrate whether it is worth fixing or not. It will calcualte the difference based on what clients perceive the variable rate to do over 5 years. We do not provide any assistance in predicting rates. It is a simulator only. I also give them my article called "To fix or not to fix" which outlines reasons why or why not to fix rates. See this article and simulator on
    Happy reading.
  • BBB | 09 Oct 2009, 10:50 AM Agree 0
    The press are just reporting what the so called economists are saying, if you analyse the forecasts, as was done yeaterdat, the avarage forecast cash rate across all economists by December 2010 will be 4.50% with a 1.25% variation between the highest and lowest forecast.

    Assuming the avarage times these economists are correct is 30% ( pretty much an acceoted figure), and very few of them picked this last crisis, but all have an explanation as to why it happened after the event , the press would be better off consulting a number of crystals ball readers , physics , star gazer or what ever, as frankly they have just as a good as chance of picking what the cash rate will be by December 2010.

    Scary stuff reallt
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