Byso - please explain?

Journey Man
[b:47d9b4f3fa]Byso, given how wonderful the economic management of the Howard government is, and given the ran a scare campaign over this at the last election, would you care to explain the following please?[/b:47d9b4f3fa]

STATEMENT ON MONETARY POLICY
February 2005
The material in this Statement on Monetary Policy was finalised on 3 February 2005.

On balance, the Board decided at its February meeting to leave interest rates unchanged, [color=red:47d9b4f3fa][size=18:47d9b4f3fa][b:47d9b4f3fa]while noting that the likelihood of further monetary tightening being required in the months ahead had increased[/b:47d9b4f3fa][/size:47d9b4f3fa][/color:47d9b4f3fa]. The Board will continue to monitor developments over coming months and will respond as necessary to ensure that rising inflation does not jeopardise the sustainable expansion of the Australian economy.
 
First Grader
Are you kidding me Mata I'm sure you expected them to go up far sooner than they have.

Also they've been sprouting increase for the last 3 months..........Nada.

It's simply scare tactics to slow the market....imo.

But if they do go up. It's expected.


Interest rates WILL increase they've been to LOW for too LONG. But I will enjoy reading your sprouting every time there’s TALK of them going up :wink:

Six. Plasmas still looking good.....NO interest over 4 years. :wink:
 
UFO Hunter
No, howards no more a lyer than any polly. Im sure even after the rise we can still consider the rates low compared to the late 80's early 90's.
 
Winging it
Staff member
I think it strange that the Reserve Bank states that high raw material prices, the capacity constraints in some sectors and higher employment costs will put pressure on inflation and then implied that higher interest rates may be justified. It strikes me that business doesn't need a double whammy of increased costs generally AND higher rates.

Higher rates have been pushed by the treasurer over the so called fear factor of housing prices being too high. There was a slight increase in November but in general loans for new construction are down. The results from building companies are coming through now and they are disappointing. If I were an investor I do not think that housing prices have risen too greatly. The old standard was that the value of today's money would be half in seven years (or in reverse - today's money buys half of what it did 7 years ago), so by my reckoning and taking in to account the billions spent on home renovations house prices are just keeping pace, and since the slowing are falling behind. I just can't see how a rates increase is required. We are still way above all our trading partners.

On the subject of industrial relations I think we are all in for a shock come July 1 when the Libs control the Senate. On one hand Howard and Costello pushed for separately negotiated contracts (and therefore fragmenting any bargaining position) and are now pushing for universal agreements across Australia. I will say I think that is a good move. It is crazy for a business to have different awards for staff doing the same job in different States.
 
First Grader
Interesting - so you think howard is a liar byso??

You funny fellow.

He never said they wouldn't go up. Just that Labor wouldn't manage them as well as the libs.

I say thats true considering they ALP cant manage themselves.... atm!
 
First Grader
He went into an election saying yes to GST and we voted him in :wink:

See fluffy you've gotta try harder :lol:
 
Journey Man
But i wasnt talking about the election that he polled less than labor on primary votes - i was talking about when he said there was no way he would go for a GST.
 
Reserve Grader
The increase would happen. No matter WHO is in.

An increase occurs because of reforms put in around 8 years before hand. So when you see the rate rise of 17%, one must remember that it is a long-term result of the reforms of the Libs that was put in. Also with that in mind, although the interest rate was at 17%, house prices were VERY low... now the interest rate is low, house proces are astronomical! So it all evens out in the end.

Libs are now acknowledging that there will be a rate rise (due to the large amount of debt and the growing world economies). They want to install industrial reforms. They do not have the power to do so. The states have. And they will not relinquish their power, that is guaranteed. So the Libs are screwed.

And what would those reforms have been? Lowering wages and booting out unions of course! So, if any one of you have jobs with companies that aren't unique or require tough degrees or have pleanty of people wanting that job, pray that the Libs don't get their grubby hands on industrial law.
 
Reserve Grader
When Keating wanted the GST, Howard went against it saying he would NEVER support the GST...

Then he goes and does it anyways...

LIAR
 
Reserve Grader
Not all knew it was coming... in fact very few did... the ads were VERY misleading...

I suggest you get over the Libs... They really will be the first up against the wall when the revolution comes (LOL)... well, when the rates rise anyways...
 
First Grader
NO I dont!

The election was based on the GST which was won.

So what about what he said 4 or so years prior.
 
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