And once again the interest rates are ready to take off…

I am just wondering, with so much emphasis on rising interest rates have we pondered why the regulators are giving such mixed signals.

On one hand to control inflationary pressures they are increasing the bank rate on the other hand they are making money supply more and more easy.

This year we have had more housing approvals than ever – the number of approvals has risen by 35%. The funding institutions have relaxed their credit policies. More and more people are being able to borrow. On one hand they are increasing the rate of interest thus making sure that people pay more for the borrowed dollar but on the other hand 100% loans , relaxed policies for the self employed is encouraging mums and dads to borrow more.

The study inflationary trends are only as factual as the basket of commodities used to indicate the trends. Petroleum and banana prices cannot be used key indicators of rising prices. Too much intervention by the regulators can upset the free market mechanism. Too much taxation and duties have scared the investors away for the time being but may be the falling vacancy rates could change that in due course.

For the time being, it’s still a buyers market. For all of you who bought two-three years ago, its time to consolidate and also keep an eye on prospective growth areas.

Disclaimer: The above views are merely the writer’s opinion and should not be used to make any investment decisions.