12 June 2008
Tito Chickens Out: Hikes Repo Rate 50 Basis Points
Despite threatening to hike rates 200 basis points the Reserve Bank has now decided to raise rates by the standard 50 basis points. Tito shows once again he prefers death by a thousand cuts and I wonder if this will mean 2 or 3 consecutive rate hikes in the future as Tito constantly finds himself behind the inflationary curve.
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3 comments:
Rate Cuts?? More increases first. remember that it takes 6-12 months for rate hikes to have a noticeable affect as they are little increments that take time to bite. So we are only seeing the effects (at best) of the first 5 -6 rate hikes (50-60% thereof)now!! The other 4 still have to bite!!
May be Geffen's 25% -40% necessary price drops are not too far off the mark!! It will be a joke if what he says actually happens.
Whoops! Thanks for catching that.
I can see a 50% drop in the house prices, the same as in the USA.
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