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Can Bollard cut? Interest.co.nz
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I don't think Bernard mentioned that food prices have gone up by over 9% pa to December 08!
That's huge and one of the biggest bills for most families.
With all that interest Fonterra and other producers pay on their billions of debt I can't see that going away fast.
Like I've said over and over for years, all the things you need are going up, your want's are going down. Just need oil to spike back up (it will, it has), and then where will interest rates be.
It would certainly be a shame if all these "break fees" were stacked onto mortgages and then the mortgage rates went back up in a couple of years.
It is certainly a possibility.
(Note to Fonterra and well, everybody - Best to pay debt off while you can).Find The Trend Whose Premise Is False - Then Bet Against It
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I suppose he could wait and keep some in reserve for when it will probably get worse, or just try to make a bigger difference now, to maybe help prevent people losing their jobs etc.
I think at least a 1% maybe 1.25% this time, he still has a bit to play with luckily, unlike the UK and US, so you may as well get on with it and cut reasonably big I think.
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dropping a full % is probably what he'll do
however events offshore are driving this crisis of confidence so i doubt it will achieve much
what it will do is prevent the housing decline from dropping faster
but it won't reverse anything
just give people more time to make decisionshave you defeated them?
your demons
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