Looks like it went up 2% and stayed there for a couple of years. Then it went down. So what happened in 1992 or so?
What would happen now if interest rates went up 2% and stayed there for two years?
We got the AAA rating in 1974 and rates went up.
Markets fluctuate regardless, and in the eighties 2% wasn't seen as a big fluctuation after what those poor borrowers went through, although you are looking at a rise that happened in 1985 before we lost the AAA rating. You are wrong.If you use the St Louis chart you can chart the fluctuationsto the month.
We lost the last AAA rating in December 1986 and in February 1987 (just two months later) the yield rates fell, and continued falling. History is indisputable, yet people are out there preaching and predicting doom, when history clearly shows that it doesn't matter. traders know that Australia as a sovereign currency issuer can't default when it borrows in it's own currency.
The scaremongers are wrong, and that can be demonstrated.
There will be a political price to pay. Politicians have brainwashed the voters into believing that the AAA rating is critical when it's not. People are scared of what it will do to them, and it could cause a loss of confidence, that is completely attributable to politicians lying to the people. Both sides have done this, it's not all Morrisons fault, although he did play a part.
Well, most australians on't care about ustralian bond rate... what they care about is mortgage rate.
Perhaps it is just coincidence, but can you tell me what happened after we lost our AAA credit rating on this chart ?
That's irrelevant, the overnight rates are set by the RBA and that is the greatest influence on borrowing rates.
You may recall that in 2008 rates were falling globally but our RBA chose to increase rates. Equally we may see global rates increasing over the next few years while our borrowing rates are stagnant or fall.
That's irrelevant, the overnight rates are set by the RBA and that is the greatest influence on borrowing rates.
You may recall that in 2008 rates were falling globally but our RBA chose to increase rates. Equally we may see global rates increasing over the next few years while our borrowing rates are stagnant or fall.
I recall just fine.
You miss my point.
It might be irrelevant, but that is how the punters will remember the period after us losing our AAA rating.
9 out of 10 Australian's don't know or care what a bond rate is... but 9 out of 10 know and care what a mortgage interest rate is.
It might be irrelevant, but that is how the punters will remember the period after us losing our AAA rating.
9 out of 10 Australian's don't know or care what a bond rate is... but 9 out of 10 know and care what a mortgage interest rate is.
I would think that 99.9% of people have no idea that we lost it in December 1986 and got it back in October 2002. They seem to think we were born with it and it's never been otherwise, or they really don't care.
Take risks - if you win you will become wealthy, if you lose you will become wise
You may recall that in 2008 rates were falling globally but our RBA chose to increase rates. Equally we may see global rates increasing over the next few years while our borrowing rates are stagnant or fall.
Yes, you might see borrowing rates stay low, but you might also see access to "easy money" get more difficult for banks and for the suburbanites. The majority are happy with the status quo and are resistant to change. Whether or not things pan out for the "business as usual" scenario has yet to be seen. No need to get too spooked.
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