This is for CJ, AKA Village Idiot. Orthodox Easter is May 1 this year. I won't be surprised if we see a 0.5cent drop in the Reserves money rate over the next two RBA meets. I have said elsewhere that it might be prepared to drop it by .5 in one hit. 0.25 for the banks, and 0.25 for the public. The AUD is too high for the RBA's liking and now that Yellen has all but ruled out increasing rates, the RBA will need to act independently to bring down the AUD. This will mean that spot increases against the USD, and should the AUD drop below USD 0.70, then silver will be around $24.
A bold prediction, hope it doesn't happen though. Dropping interest rates to banana republic levels is not in the national interest.
you call me the village idiot but yet have so far not managed to get a single thing correct. keep trying Sammy -- remember even a broken clock is correct 2 x times a day.
Doesn't always work that way. Between now and next Tuesday the market will start pricing in a 0.25% rate cut. If the RBA delivers there will be a further drop to fully price in the cut but it will depend on the RBA's forward guidance whether the AUD continues to decline or whipsaws higher if Stevens is too positive about the state of the Australian economy. The US economy also dwarfs the Australian economy. If the Fed continues its dovish rhetoric, the USD's decline will have more impact on the market pushing the AUD higher regardless of the RBA cutting rates.
Yes, very likely, but there'll still be an immediate (over)reaction if the rate is dropped inline with market expectations, followed quickly by reversion. But, and this is a big but, the current ramp up in AUD strength will have surprised the RBA and they may drop rates against market expectations which will lead to a sustained AUD fall and a coresponding silver price rise. Anyway, its all a bit of a wank until the fat RBA lady sings.
were getting closer now not long to go now until this is yet another failed prediction by Sammy "the fool" silver
I was having a crap last night in Adelaide. Turned to flush the toilet, and there's CJ peeping out from within the cistern. If only my ex wife doted on me as much.
Next Tuesday is the Budget plus RBA meeting day. Will it be in the government's interest for the RBA to drop interest rates on the afternoon before budget night? This adds another layer to the complexities. I still think an interest rate cut is on the cards but not so sure now. Will the RBA gov come out with weasel words defending a hiatus until after the budget?
A rate cut is now on the cards after yesterday's CPI figures clearly demonstrated that the government's political lies are coming home to roost and Austrlia has now slipped into a depression. How bad are things, and how likely is a rate cut now?
___________________ Well that sounds about right! I am just about to lock in my mortgage for 3.99% for three years....... sigh.
