... and reference to yesterday's chat around the 6 months delayed effect. An immediate result is that the investors in the share market (especially banking sector) lose their money as illustrated by the red arrows on the sector screen. That should result in lower spending on consumer goods as well as a reluctance to buy shares. Lateley I hear some responces on queries in the media start with the phrase "I don't think ..." - Hope this is not the case with our Governor and that he will pipe up with "I think that an increase of 100bp is justifiable, but taking into account certain socio economic factors and the RB duty to stabilize the monetary environment,we will postpone any increase until it is proved that our brothers and sisters in the public sector spend their well deserved salary increase wisely and preferably focus on savings rather than squandering."
It is for that reason , i feel interest rate will remain unchanged. Buy bank shares , hold , if interest rate remain unchanged , those share will increase in value (as seen in our last monetary meeting) and then sell . Reasonable profit can be made for only couple of hours? omo