Mortgage holders might be cracking open the champagne for a second straight month if an early money trail on Centrebet for Interest Rates to be left on hold again in March hits the mark!

Centrebet’s Neil Evans admits to still being in a semi-state of shock the RBA didn’t lift the rates by 0.25bp last week, but back-to-back holding patterns from the Reserve would prove a bigger celebration than anti ETS campaigners in Copenhagen!

“We opened ‘Stay the Same’ for March a $2.60 second favourite, but already it’s in to $2.05 after scores of bets, including one finance “specialist” who has backed it four times, even nearly four weeks from the decision,” Evans said. “Consequently, the early favourite of a quarter percent increase has eased from an opening $1.55 out to $1.65, while the 50bp rise has eased from $5.00 out to $5.50!”

Evans said rarely do you see such a significant move for one option so far out from the decision!

“Our feeling was the rates must go up in March after the RBA held fire in February, but the early punters say the cash rate is going nowhere for the moment!”

NEXT RBA OFFICIAL INTEREST RATE DECISION (Sch Mar 2, 2010)

$1.65

STAY THE SAME                                         

(out from $1.55)

$2.05

INCREASE BY 0.01 – 0.25 %                  

(in from $2.60)

$5.50

INCREASE BY 0.26 – 0.50 %                   

(out from $5.00)

$51.00

INCREASE BY MORE THAN 0.51 %

 

$81.00

ANY DECREASE

 

FOR ALL THE MARKETS GO TO www.centrebet.com FINANCIAL

Last Updated: 8th February 2010
Tags: Specials Financials rba interest rates