What's your prediction on the Australian Dollar?

[Foreigner]

I hope the RBA board is not asleep.

 

[Pushka]

I hope the RBA board is not asleep.

I hope they are.

 

[JohnK]

I hope the RBA board is not asleep.

I hope they've all been sacked and take 10 years to reappoint.

Don't interfere. Let the AUD go where it belongs. That's why the stupid currency was floated in the first place. Not to be manipulated by some board that gets it wrong quite quite often.

 

[Abdul_A350]

The RBA will have failed if it allows speculators and carry-traders to win. AUD is still overvalued relative to fundamentals. That, and I have more money I need to convert.

 

[hummel]

75.5! I take full credit as I invested a few grand at 74 which was obviously going to push it up to spite me ðŸ

Please invest a few more when you can..

 

[Foreigner]

I hope they've all been sacked and take 10 years to reappoint.

Don't interfere. Let the AUD go where it belongs. That's why the stupid currency was floated in the first place. Not to be manipulated by some board that gets it wrong quite quite often.

The Board and even government can get things wrong but both have a crucial role in managing monetary policy.

 

[eastwest101]

Meanwhile - the NZ Reserve bank has had enough of their over-valued Kiwi $

New Zealand interest rates cut in shock RBNZ move - ABC News (Australian Broadcasting Corporation)
Graeme Wheeler also planted the seeds for more interest rate cuts, saying "further policy easing may be required to ensure that future average inflation settles near the middle of the target range".

Official interest rates in New Zealand have been volatile in the last few years. In March 2014, New Zealand became only the second developed economy to increase rates since the global financial crisis, after Australia did so in late 2009. The RBNZ implemented three further rate rises, taking the cash rate from 2.5 to 3.5 per cent within a period of just five months. Those rises were unwound last year, with the RBNZ cutting the cash rate in June, July, September and December.

I don't know why the NZ Reserve Bank thought raising interest rates was a good idea with negative interest rates and the entire world running the printing presses since 2008 they were always going to have to reverse those rises otherwise they would put their export industries out of business. Maybe the Australian RBA will wake up one day and reversing its ill-advised rate rises from 2009 to 2011, they can also lop off some of the very ill-advised rises from 2004 to 2008 as well.

 

[Abdul_A350]

Meanwhile - the NZ Reserve bank has had enough of their over-valued Kiwi $

About time too. Hopefully the RBA follows suit.

 

[Warks]

Is there anyone here who wouldn't mind interest rates at about 7%? I'm starting to sympathise with self-funded retirees and that's a long way off for me!

(my mortgage is insignificant and no other borrowings)

 

[JohnK]

Is there anyone here who wouldn't mind interest rates at about 7%? I'm starting to sympathise with self-funded retirees and that's a long way off for me!

(my mortgage is insignificant and no other borrowings)

Interest rates would be good at ~11%. You actually get something for your savings and people don't over commit.

We'll be paying to have money in the bank soon.

 

[Pushka]

Is there anyone here who wouldn't mind interest rates at about 7%? I'm starting to sympathise with self-funded retirees and that's a long way off for me!

(my mortgage is insignificant and no other borrowings)

Me. I agree about the self funded retirees position but also have a mortgage. Admittedly investment one but I still have to pay it.

 

[JohnK]

The Board and even government can get things wrong but both have a crucial role in managing monetary policy.

I see it this way.

The Reserve Bank has been manipulating the AUD and our economy is in trouble. Clearly their policy has failed.

Time to increase interest rates and let the AUD settle where it belongs. Can't be worse than what we have now. Sure people are profitting from it but big deal. People profit from manipulating shares but don't see anyone losing any sleep there.

And another thing. Why should importers suffer to make life easier for exporters?

 

[drron]

Is there anyone here who wouldn't mind interest rates at about 7%? I'm starting to sympathise with self-funded retirees and that's a long way off for me!

(my mortgage is insignificant and no other borrowings)

Totally agree.Little concern around the world for savers.Leading to huge misappriation of resources.Not going to end well.

 

[drsmithy]

And another thing. Why should importers suffer to make life easier for exporters?

Because exporters pay the bills for a country that imports nearly everything it consumes.

 

[JohnK]

Because exporters pay the bills for a country that imports nearly everything it consumes.

There's a much easier way to fix that.

Control executive salaries from getting out of control and bring in an attractive minimum wage that does not border on the ridiculous and produce things locally.

Oh and government can be the business owner. No need to let private enterprise lose the way.

Seriously how did we shift everything offshore? Cost? So we sacrificed quality for quantity that is useless.

 

[Awesom Andy]

Oh and government can be the business owner. No need to let private enterprise lose the way.

Or create private enterprises, but with the government owing large amounts of shares and have board representatives.

 

[Abdul_A350]

Oh and government can be the business owner. No need to let private enterprise lose the way.

Yes, centrally planned economies have done so well in the past. Because governments are known to be highly competent and altruistic when immune from market forces.

 

[JohnK]

Or create private enterprises, but with the government owing large amounts of shares and have board representatives.

The biggest mistake was privatising super. Private super has totally lost the way.

I was playing golf with a friend last Sunday. He has just turned 60. He was a school teacher until 8-9 years ago when he gave it away and became a postie for a few years until a few years ago. He is now getting a really nice pension from State Super (?) which is equivalent to ~80% of the average of his final 3 years of service. He almost earns as much as me and pays much less tax. His wife an ex customs director with the same sort of deal.

My superannuation is paying for the private super fat cats Christmas party and First class flights on their work trips. Gross negligence.

 

[drsmithy]

Seriously how did we shift everything offshore? Cost? So we sacrificed quality for quantity that is useless.

Yes. Welcome to neoliberalism. Thirty years of failure and counting.

 

[Awesom Andy]

He is now getting a really nice pension from State Super (?) which is equivalent to ~80% of the average of his final 3 years of service. He almost earns as much as me and pays much less tax.

Lucky guy who knew what he was doing and looked for somewhere with a defined benefit plan. They are pretty much extinct these days.