Interest rates likely to go up before elections.

Sstar · 1 Interest rates likely to go up before elections. Thu Oct 23, 2014 10:32 pm

Sstar

Vice President - Equity Analytics

Posts : 1426
Equity Stars : 9176
Reputation : 51
Join date : 2011-11-01

Interest rates are likely to go up during next 3 months due to government pressure to provide better deposit retuns to pensioners and others to get their vote. This would likely to have a short term increase in the interest and TB Rates. This will likely have a negative impact towards the stock market.

Don't you think it's better to exit stocks prior to elections?

Pora · 2 Re: Interest rates likely to go up before elections. Thu Oct 23, 2014 10:37 pm

Pora

Equity Analytic

Posts : 23
Equity Stars : 3577
Reputation : 0
Join date : 2014-09-07

If elections are to be held mid 2015, we could have all made more.... Sad

NZ BOY · 3 Re: Interest rates likely to go up before elections. Thu Oct 23, 2014 10:43 pm

NZ BOY

Moderator

Posts : 2891
Equity Stars : 14579
Reputation : 161
Join date : 2013-02-28
Location : wellington

Interest rates will be at these levels for another one or two years. There's no significant credit growth in this country yet. A possible rate cut is on the cards. i dont think interest rate likely to go up

Last edited by NZ BOY on Thu Oct 23, 2014 10:44 pm; edited 1 time in total

RPPA · 4 Re: Interest rates likely to go up before elections. Thu Oct 23, 2014 10:44 pm

RPPA

Expert

Posts : 2565
Equity Stars : 8446
Reputation : 91
Join date : 2014-09-17

Sstar wrote:Interest rates are likely to go up during next 3 months due to government pressure to provide better deposit retuns to pensioners and others would likely to have a short term impact in the interest rates. This will likely will have a negative impact towards the stock market. Don't you think it's better to exit stocks prior to elections?

Sstar

Is this your personal view or the government view.

As i live day today with interest rates such drastic change in interest rates has not came in to light.Especially the quarterly revision possibilities for the finance sector already gone & the next is on 01/01/2015 which is based on Weighted average bill auction rates. As per now they can't increase it much as 50 days already gone for the next revision.

Elections to be held in JAN' 2015.

Shocked

Last edited by RPPA on Thu Oct 23, 2014 10:49 pm; edited 2 times in total

NZ BOY · 5 Re: Interest rates likely to go up before elections. Thu Oct 23, 2014 10:44 pm

NZ BOY

Moderator

Posts : 2891
Equity Stars : 14579
Reputation : 161
Join date : 2013-02-28
Location : wellington

Sstar wrote:Interest rates are likely to go up during next 3 months due to government pressure to provide better deposit retuns to pensioners and others to get their vote. This would likely to have a short term increase in the interest and TB Rates. This will likely have a negative impact towards the stock market.

Don't you think it's better to exit stocks prior to elections?

Interest rates will be at these levels for another one or two years. There's no significant credit growth in this country yet. A possible rate cut is on the cards. i dont think interest rate likely to go up

soileconomy · 6 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 4:47 am

soileconomy

Senior Vice President - Equity Analytics

Posts : 1505
Equity Stars : 7550
Reputation : 45
Join date : 2011-02-20
Age : 46
Location : Nebraska

For pensioners there will be a special interest scheme from the budget.not all the people

Octopus · 7 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 5:42 am

Octopus

Expert

Posts : 522
Equity Stars : 6425
Reputation : 53
Join date : 2014-04-30

If interest rates goes up at this crucial stage in mid quarter, everything change and it will not be a wise move. It is reasonable to increase pensioners Rates to win the old age people's heart. Because they are disappointing and helpless. some pensioners need their allowances to get fixed up too.
E.g. My dad retired long time ago, same people, same job retires just a year after gets two times as my dad get. this is not fair. They are not happy.

Anyway, Government will not make any moves to discourage majority. It is as simple as that.Interest rates must be increased. but by doing so, everything could turn around.So they will wait till the election is over. just my view

oops · 8 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 5:53 am

oops

Manager - Equity Analytics

Posts : 123
Equity Stars : 4463
Reputation : 11
Join date : 2012-08-11

Sstar wrote:Interest rates are likely to go up during next 3 months due to government pressure to provide better deposit retuns to pensioners and others to get their vote. This would likely to have a short term increase in the interest and TB Rates. This will likely have a negative impact towards the stock market.

Don't you think it's better to exit stocks prior to elections?

Plan eke kotasak,anthimata boruwata question mark ekak dala.halo election wenakal yana tikak thama yanne.eeta passe hulan

SHARK aka TAH · 9 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 6:21 am

SHARK aka TAH

Expert

Posts : 4360
Equity Stars : 8951
Reputation : 204
Join date : 2013-08-01

Give an Increase instead touching the Rates, I dont think it will have a huge bearing.

SHARK aka TAH · 10 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 6:23 am

SHARK aka TAH

Expert

Posts : 4360
Equity Stars : 8951
Reputation : 204
Join date : 2013-08-01

PBJ was encouraging Pensioners to Invest in Capital Markets very recently , me mona katada.

ASjay · 11 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 6:36 am

ASjay

Stock Analytic

Posts : 14
Equity Stars : 3576
Reputation : 0
Join date : 2014-08-22

Sstar wrote:Interest rates are likely to go up during next 3 months due to government pressure to provide better deposit retuns to pensioners and others to get their vote. This would likely to have a short term increase in the interest and TB Rates. This will likely have a negative impact towards the stock market.

Don't you think it's better to exit stocks prior to elections?

No it will not go up, since you sold your portfolio do you want the market to come down?

Balanced_Views · 12 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 6:49 am

Balanced_Views

Assistant Vice President - Equity Analytics

Posts : 647
Equity Stars : 5840
Reputation : 20
Join date : 2013-07-23

Who said that there will be an increase in interest rates? pure speculation. market will move up in the short term due to good budget and quarterly reports. This is the time to buy. However, this is short term.

Sstar · 13 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 6:58 am

Sstar

Vice President - Equity Analytics

Posts : 1426
Equity Stars : 9176
Reputation : 51
Join date : 2011-11-01

During the month of November, December and January there is a huge demand for consumer goods which are mostly imports. This has been witnessed during festive season during April and December. This will have an impact on exchange rate and resultant inflation. These inflationary pressure coupled with government desire to win the heart of the voters before elections will likely to increase the interest rates.

These are my thoughts. I sold my portfolio but bought back few shares and hold them currently. Please don't mix up my analysis with my investment strategy. They are both mutually exclusive.

SHARK aka TAH · 14 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 7:03 am

SHARK aka TAH

Expert

Posts : 4360
Equity Stars : 8951
Reputation : 204
Join date : 2013-08-01

PBJ said Budget Proposals are not directed at the upcoming Election. Lets see today.

malanp · 15 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 7:50 am

malanp

Senior Manager - Equity Analytics

Posts : 382
Equity Stars : 4865
Reputation : 16
Join date : 2012-03-02

Sstar wrote:Interest rates are likely to go up during next 3 months due to government pressure to provide better deposit retuns to pensioners and others to get their vote. This would likely to have a short term increase in the interest and TB Rates. This will likely have a negative impact towards the stock market.

Don't you think it's better to exit stocks prior to elections?

Sstar

Your history shows you try to panic the retailers because you want to collect at low.. dont put your personal views unless it can be supported by detail analysis.

NC · 16 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 7:58 am

NC

Assistant Vice President - Equity Analytics

Posts : 692
Equity Stars : 6400
Reputation : 55
Join date : 2014-07-10

Samahara vita podi correction 1kuth danna bari kamakuth na... Very Happy

Interest rates likely to go up before elections. Tb_bmp10

This is a very valuable resourceful website. You can get any graphs relates with economics of any country... Hope will be helpful.. Very Happy

http://www.tradingeconomics.com/sri-lanka/indicators

NZ BOY · 17 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 8:34 am

NZ BOY

Moderator

Posts : 2891
Equity Stars : 14579
Reputation : 161
Join date : 2013-02-28
Location : wellington

Balanced_Views wrote:Who said that there will be an increase in interest rates? pure speculation. market will move up in the short term due to good budget and quarterly reports. This is the time to buy. However, this is short term.

well said

NZ BOY · 18 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 8:37 am

NZ BOY

Moderator

Posts : 2891
Equity Stars : 14579
Reputation : 161
Join date : 2013-02-28
Location : wellington

NC wrote:Samahara vita podi correction 1kuth danna bari kamakuth na...

This is a very valuable resourceful website. You can get any graphs relates with economics of any country... Hope will be helpful..
http://www.tradingeconomics.com/sri-lanka/indicators

thanks NC this is Valuble

NC · 19 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 8:46 am

NC

Assistant Vice President - Equity Analytics

Posts : 692
Equity Stars : 6400
Reputation : 55
Join date : 2014-07-10

Ur welcum NZ.. Very Happy

KAS10 · 20 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 9:00 am

KAS10

Manager - Equity Analytics

Posts : 160
Equity Stars : 3873
Reputation : 16
Join date : 2014-08-05

I dont think interest rates will go up.coz long term treasury bill rate is 6 % .

Octopus · 21 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 9:05 am

Octopus

Expert

Posts : 522
Equity Stars : 6425
Reputation : 53
Join date : 2014-04-30

Sstar wrote:During the month of November, December and January there is a huge demand for consumer goods which are mostly imports. This has been witnessed during festive season during April and December. This will have an impact on exchange rate and resultant inflation. These inflationary pressure coupled with government desire to win the heart of the voters before elections will likely to increase the interest rates.

These are my thoughts. I sold my portfolio but bought back few shares and hold them currently. Please don't mix up my analysis with my investment strategy. They are both mutually exclusive.

at this crucial stage, who would think about inflation?
electricity down
gas down
oil down
down down prices are down.... Would rates will be up? do you reckon?
I will tell you for sure, Salary will be up. As you said, there may be something for pensioners too

As shark Aka Tah said, Pensioners also will get encouraged to invest in Stock market.

Miracle of Asia my dear. This is about to happen, in front of our eyes. Very Happy

My salutes to oops because he said, "halo election wenakal yana tikak thama yanne.eeta passe hulan"

AAABoy · 22 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 9:23 am

AAABoy

Moderator

Posts : 172
Equity Stars : 10917
Reputation : 29
Join date : 2011-08-30
Age : 34
Location : Colombo

Sstar wrote:Interest rates are likely to go up during next 3 months due to government pressure to provide better deposit retuns to pensioners and others to get their vote. This would likely to have a short term increase in the interest and TB Rates. This will likely have a negative impact towards the stock market.

Don't you think it's better to exit stocks prior to elections?

Agree. But I hope rather increasing interest rates, CB will look for special interest scheme for pensioners such like a deposit method which gives better % than normal banking deposit. CB keep reducing interest rates in order to increase private sector credit but still it hasn't worked well. Still it is difficult to obtain a loan from Banks when a normal person goes and ask for a loan.

oops · 23 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 9:26 am

oops

Manager - Equity Analytics

Posts : 123
Equity Stars : 4463
Reputation : 11
Join date : 2012-08-11

Meya meyatai gang ekatai one ewa market karanne,api owata kagahanna one naaa

bandulawee

bandulawee

Manager - Equity Analytics

Posts : 286
Equity Stars : 5810
Reputation : 13
Join date : 2012-02-29

There is a strong likelihood that interest rates could go up for a short period. The budget will be a election propaganda manifesto aimed at recapturing the lost votes. President will speak of the economic growth we have achieved and sharing the benefits with the people by increasing salaries, reducing taxes on essential goods and increasing interest rates on short term deposits so that people will benefit.The recent fuel and power tariff reductions were also part of the propaganda. Stock market will anyway be slack during the festival season. After elections everything will be back to normal and our readers can get back to their trading activities.

D.G.Dayaratne · 25 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 1:05 pm

D.G.Dayaratne

Senior Vice President - Equity Analytics

Posts : 2021
Equity Stars : 8715
Reputation : 57
Join date : 2011-12-13
Location : Kotte

During the election time Stock market prices may go

Most share holders think this govt is not investor friendly

and Ranil,s policies are more inverter friendly

But economic management of both parties are more or less same

Sponsored content

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Latest topics

Interest rates likely to go up before elections.

1 Interest rates likely to go up before elections. Thu Oct 23, 2014 10:32 pm

Sstar

2 Re: Interest rates likely to go up before elections. Thu Oct 23, 2014 10:37 pm

Pora

3 Re: Interest rates likely to go up before elections. Thu Oct 23, 2014 10:43 pm

NZ BOY

4 Re: Interest rates likely to go up before elections. Thu Oct 23, 2014 10:44 pm

RPPA

5 Re: Interest rates likely to go up before elections. Thu Oct 23, 2014 10:44 pm

NZ BOY

6 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 4:47 am

soileconomy

7 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 5:42 am

Octopus

8 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 5:53 am

oops

9 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 6:21 am

SHARK aka TAH

10 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 6:23 am

SHARK aka TAH

11 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 6:36 am

ASjay

12 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 6:49 am

Balanced_Views

13 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 6:58 am

Sstar

14 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 7:03 am

SHARK aka TAH

15 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 7:50 am

malanp

16 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 7:58 am

NC

17 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 8:34 am

NZ BOY

18 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 8:37 am

NZ BOY

19 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 8:46 am

NC

20 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 9:00 am

KAS10

21 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 9:05 am

Octopus

22 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 9:23 am

AAABoy

23 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 9:26 am

oops

24 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 10:30 am

bandulawee

25 Re: Interest rates likely to go up before elections. Fri Oct 24, 2014 1:05 pm

D.G.Dayaratne

26 Re: Interest rates likely to go up before elections.

Sponsored content

New topics