Results 1 to 3 of 3

Thread: Rate hike bets

  1. #1
    just me duncan drennan's Avatar
    Join Date
    Jun 2006
    Cape Town
    Thanked 94 Times in 77 Posts

    Rate hike bets

    The monetary policy committee is meeting today and tomorrow, so let's put out bets on the table.

    From all the data so far it looks like we are headed for a rate hike, the question is how big? The economists have their money on 50 basis points, but how often have they been wrong?

    I'm going to stick my head out a bit, and put my money on 100bp

    What's your bet?

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Durban, South Africa
    Thanked 2,393 Times in 2,002 Posts
    Blog Entries
    I'll go with 50, although with all the pain cued up to come I wouldn't be that surprised if an increase was put off right now.

    It's hard to see how an interest rate increase is going to turn CPIX trends right now - there are just too many important "above 6%" cost increases that need to filter through.

    Personally, I think we've missed the boat to turn this trend and keep CPIX under 6% using the interest rate instrument. Interest rate increases now are just going to be an additional cost that needs to be factored into price increases. Most of the credit is pretty much locked in and the credit binge is over anyway.

    It's time to pay the piper.
    Seeing opportunity changes nothing. Seizing opportunity and running with it changes lives.

  3. #3
    Having not such a great understanding of all factors (YET), and just listening to what is being suggested, I would go with 50 BP.
    For the most rewarding FREE online advertisement for your South African Business, visit - the South African Business Directory

Similar Threads

  1. How would an interest rate increase affect you?
    By I Robot in forum Business Finance Forum
    Replies: 97
    Last Post: 21-Apr-10, 01:31 PM
  2. Call for 2 percent interest rate hike.
    By Dave A in forum Business Finance Forum
    Replies: 0
    Last Post: 03-Oct-06, 10:34 AM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts