Wednesday, October 3, 2007

Why, yes, I'd love to pay you more money.

I got a nice, polite letter from my mortgage provider yesterday, advising that due to "significant increases in capital market costs", they have put my interest rate up by 0.25%. Of course I realise they have costs, but what's next? "Due to a significant increase in the cost of those blue business shirts with white collars that all of our financial staff like to wear..."? "Due to a significant increase in the cost of sending you nice letters to inform you that there's been a significant increase in costs..."?

Coincidentally, today's the first Wednesday of the month - so in a little under an hour, the lovely people at the Reserve Bank will announce their decision on the cash rate for the month of October. Analysts have predicted that it will stay steady and I hope they're right. The wobbly house of cards that is my personal budget doesn't really need another rate increase at the moment. There is expected to be another rate rise before the end of the year though.

And, yes, I know that the economy is going gangbusters. How could it not be, with all the money being pumped in by my mortgage repayments!

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