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Smurf


I think if the oil price drops to say $50 then your first scenario is entirely feasable and interest rates will rise.


If oil keeps rising or stays where it is over the next year then this acts like an interest rate hike on demand and the interest rate ill stay at present levels.


If we see a drop in interest rates then another shock must have occurred which will not be good for anyone. The way property is in this country though, any cut in interest rates will reignite the property boom, unfortunately.


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