ZIRP for Australia? Join discussion...

"I am wary of the constant suggestion that futures markets are “predicting” rate cuts. Contrary to popular belief, futures markets really don't predict anything. Institutions and corporations exposed to rate movements use interest rate futures as a hedging tool to “lock in” rates. Clearly global uncertainty has led to fear that rate cuts might be necessary, which is why hedging has become more urgent. Such activity has pushed rates down. But by the same token I could say that a rise in the cost of fire insurance premiums implies more people are predicting their houses will burn down." Join discussion...

This sentence is interesting "An interest-rate rise might take the heat out of the mortgage market, but it will also chill the rest of the economy." That sounds very much like Australia. Join discussion...

"Credit analyst Philip Bayley, of ADCM Services, said the gap between the interest rates that wholesale lenders charge and benchmark rates such as government bonds had been widening." Join discussion...

So, the banking reforms is a complete waste of time? "OFFICIAL interest rates are about 1 per cent lower than they would be because of the banks' super-sized increases, RBA Governor Glenn Stevens said today." Join discussion...

Rising supply of homes? Join discussion...

...restrict bank interest rate rises to increases in the Reserve Bank cash rate, has the potential to deliver a devastating fall in Australian house prices. Join discussion...

He is in favour of the RBA to raise interest rates to combat rising house price due to speculation. Join discussion...

Also, this paragraph: "His speech also contained a veiled warning there was more to be done to address Australia's housing shortage, given population growth is at its highest since the 1960s." Join discussion...

Alan Kohler alleges that journalists like Ross Gittins are given 'insider' drip on RBA's interest rates decisions. Join discussion...