Hey Lilith - Since I know roughly nothing about this kind of thing - What sort of effect on the AUD will the interest rate hike have (if any)?

Normally, it would put a brake on core inflation and slow things down a bit, but in the current conditions it would take a lot more to take the shine off. Which, is why its done to core inflation as that affects policy making internally and those policies by the government in regards to trade will begin to define how the dollar is valued.

quote:

Originally posted by Lilith Normally, it would put a brake on core inflation and slow things down a bit, but in the current conditions it would take a lot more to take the shine off. Which, is why its done to core inflation as that affects policy making internally and those policies by the government in regards to trade will begin to define how the dollar is valued.

Should be interesting then. It jumped nearly a whole cent since this morning.

Yeah, at this point all the financial institutions (and me!) are loading up on foreign currency with anything they can spare for when it inevitably drops down to where it usually is at around 13-16% less.

Problem with the dollar being high is that it affects trade to some extent that no one wants to buy our overpriced cars, come for holidays, get an education here, food exports and resents buying our dirt full of iron, aluminium and uranium.
So, it will drop down, I'm not quite sure how far it will drop but if past examples are anything to go by, it'll dip sharply after a small drop off and then begin to rapidly climb again. Quite volatile really.

quote:

Originally posted by Lilith Yeah, at this point all the financial institutions (and me!) are loading up on foreign currency with anything they can spare for when it inevitably drops down to where it usually is at around 13-16% less. Problem with the dollar being high is that it affects trade to some extent that no one wants to buy our overpriced cars, come for holidays, get an education here, food exports and resents buying our dirt full of iron, aluminium and uranium. So, it will drop down, I'm not quite sure how far it will drop but if past examples are anything to go by, it'll dip sharply after a small drop off and then begin to rapidly climb again. Quite volatile really.

Yeah, I wish I had some money to put into something like that at the moment :/

I LOVE YOU MELBOURNE CUP!

quote:

Originally posted by Fledz I LOVE YOU MELBOURNE CUP!

The drinks are on you, sweatheart

quote:

Originally posted by Sushipunk The drinks are on you, sweatheart

I'm on the Gold Coast in mid Jan for work, but staying an extra night. If you want to grab a few drinks on the Friday night, done deal

quote:

Originally posted by Fledz I'm on the Gold Coast in mid Jan for work, but staying an extra night. If you want to grab a few drinks on the Friday night, done deal

I might hit you up! I might be away on hols though. We'll see!

I think that Friday is the 21st Jan.