Wednesday, August 27, 2008

Even the bookies think rates will drop

From today, Australian betting agency, Centrebet will be taking wagers from punters on changes to the Reserve Bank’s official cash rate, with the initial odds favouring a drop in rates when the bank meets next Tuesday.

Centrebet is paying $1.25 for a rate cut of one quarter of a per cent and $3.50 for a cut of more than a that.

If you place a bet for rates to stay the same, and you’re right, the bookmaker will pay you $5 and if you back an increase of one quarter per cent – a scenario considered highly unlikely – you’ll get $51.00

For a rate rise of more than a quarter per cent, Centrebet is paying $201.00!

A spokesman for Centrebet predicted the book would be popular because of the high level of interest in rate movements.

I’m not placing a bet, I’ll save that for the Melbourne Cup. But if you want my tip – go for the favourite - a quarter per cent reduction.

(Source: The Australian, 27 August 2008)

All prices quoted are AUD

1 comment:

Jay Popat said...

if bets are made on rate drop or rise... i think its wasting money and shows a foolish betting company is smarter than the central bank. Central bank should run a betting agency on everything since they are the ones who play all the time.

:D

Its a shame that some agency is betting and playing with people's money. I am sure there must be enough employment opportunities than people betting.