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Greek economic problems affect interest rates?
June 2, 2012 11:35 PM   Subscribe

How will the Greek economic problems and related Euro currency issues affect interest rates and the property market in other continents, especially Australia?
posted by gttommy to Work & Money (2 answers total) 1 user marked this as a favorite
This speech by Ric Battellino, Deputy Governor of the Reserve Bank of Australia, could provide a good starting point for answering your question. The section towards the end, titled Australia's Exposure to European Developments, outlines three ways the issues in the Euro-zone could affect Australia: increased costs of funds for banks, indirect trade exposure (that is, although Australia doesn't trade much with Europe, some of our major trading partners such as China and India do trade a lot with Europe), and unpredictable confidence effects.
posted by kithrater at 5:09 AM on June 3, 2012 [1 favorite]

The worst-case scenario for Australia is probably something like this: Ultimately Europe starts buying again, China starts importing Australian resources again, and we're all fine. I hope. Takeaway lesson: be cashed up, get out of resources and allied industries, and hope things get better soon.
posted by Joe in Australia at 5:28 AM on June 5, 2012

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