Interest rates up

The RBA maintains its credibility today by following through with their threats of a rate rise, and in the process, making my forecast look ridiculous.  I still maintain that declining asset prices will pressure the RBA to decrease rates in the near future.

The combined impact of the cessation of the FHOG boost and the interest rate increases of 2010 paint an interesting picture for Australia's housing market.  Obviously my bearish outlook remains.