Yesterday was Melbourne Cup Day. The horse race that stops our nation. Meaning, the horse race that has our nation betting in some form or other. I bet a massive $2 and won back a massive $6!! Ho Ho Ho!
As for my work colleagues, two of them bet about $300 each and won $4.50 each for their efforts.
Whilst almost everyone in the country was busy gulping down Champagne, platters, lunches and buffets, the Reserve Bank of Australia (let's call them Party Poopers), decided to raise our interest rates by 25 basis points. A 0.25% interest rate hike to 4.75%. The standard variable mortgage rates across Australia are now approximately 7.81% (CBA's rate effective 05/11/10).
Japan and America's rates are ridiculous compared to our rates. Our rates are insanely high compared to the rest of the world. No wonder our dollar is at parity with the US dollar. Foreigners have been exchanging their currencies for Australian Dollars (AUD) so that they can invest their funds in our banks to receive high deposit interest rates of 6% plus.
It would be stupid to not have factored in this rate rise and the next few rate increases. There have been some devasted people posting on the news forum. Electricity, water and gas bills have increased up to 200% over the past two years and wages haven't followed. People are angry and the only ones celebrating are those who are renters and those with funds in savings and term deposit accounts earning paltry interest returns.
The Party Poopers really need to walk into our shopping centres and retail stores to realise how empty some shops are. Sure, our restaurants aren't as empty as those in Japan but a lot of them aren't full either.