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Alex28 said:There isn't?
* House prices are still rediculously over-inflated
* Consumer debt is at an all time record high
There are two huge reasons why interest rates need to rise - credit is too attractive and too easy to get at the moment, and needs to be pulled back a bit.
I understand what you are saying but an increase in interest rates isn't going to make abtaining credit any harder, and credit has always been a problem for as long as I can remember. If you read some of the RBA statements (don't ask me to prove this because I don't want to go through all the press releases) consumer debt has slowed to just 0.9% increase for the last 1/4. The slowering of debt would be attributed to the increase in interest rates(not correct english there but hey its late at night).
The housing boom in Australia is just about over. The market may still be over-inflated and over priced but the demand for housing has decreased with the rise in interest rates. There will be a correction in the prices of housing which for all of our sakes I hope isnt any time soon because that would give the Roosters supporters something else to whinge about, lol.
The real reason that the interest rates might rise in Australia is the price of oil and consumer spending. The rising prices of crude oil is putting added pressure on inflation which has to be monitored, I'm actually surprised that interest rates havent risen due to the increase in crude oil prices, which as much as some of you dont want to admit, is credit to the Liberal government.