RBA cash rate

[mullokintyre]

The pressure on Bullock is immense.
The other members of the board will also be getting the push from outside.
If she does cut rates, it will be difficult to not think she and the others have caved to outside pressure.
Mick

 

[frugal.rock]

The pressure on Bullock is immense.
The other members of the board will also be getting the push from outside.
If she does cut rates, it will be difficult to not think she and the others have caved to outside pressure.
Mick

If she doesn't, she may as well pull on the rope and stick her neck in le guillotine and let go the rope.

Even Dutton was calling for it.

 

[frugal.rock]

Media Release Statement by the Reserve Bank Board: Monetary Policy Decision

Number 2025-03
Date 18 February 2025


At its meeting today, the Board decided to lower the cash rate target to 4.10 per cent and the interest rate paid on Exchange Settlement balances to 4 per cent.

Underlying inflation is moderating.

Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance. In the December quarter underlying inflation was 3.2 per cent, which suggests inflationary pressures are easing a little more quickly than expected. There has also been continued subdued growth in private demand and wage pressures have eased. These factors give the Board more confidence that inflation is moving sustainably towards the midpoint of the 2–3 per cent target range.

However, upside risks remain. Some recent labour market data have been unexpectedly strong, suggesting that the labour market may be somewhat tighter than previously thought.
The central forecast for underlying inflation, which is based on the cash rate path implied by financial markets, has been revised up a little over 2026. So, while today’s policy decision recognises the welcome progress on inflation, the Board remains cautious on prospects for further policy easing.

The outlook remains uncertain.

Growth in output has been weak, private domestic demand is recovering a little more slowly than earlier expected, and there is uncertainty around the extent to which the recovery in household spending in late 2024 will persist. Wage pressures have eased a little more than expected, housing cost inflation is abating, and businesses in some sectors continue to report that it has been hard to pass on cost increases to final prices.

At the same time, a range of indicators suggest that labour market conditions remain tight and, in fact, tightened a little further in late 2024. Measures of labour underutilisation have declined, and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers. Furthermore, productivity growth has not picked up, which implies that growth in unit labour costs remains high.

There are notable uncertainties about the outlook for domestic economic activity and inflation. The central projection is for growth in household consumption to increase as income growth rises. But there is a risk that any pick-up in consumption is slower than expected, resulting in continued subdued output growth and a sharper deterioration in the labour market than currently projected. Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators.

More here;

Statement by the Reserve Bank Board: Monetary Policy Decision | Media Releases

At its meeting today, the Board decided to lower the cash rate target to 4.10 per cent and the interest rate paid on Exchange Settlement balances to 4 per cent.

www.rba.gov.au

 

[eskys]

CommSec

@CommSec
·
2s


The Reserve Bank of Australia #RBA has reduced the cash rate target for the first time in over four years by 25bps to 4.10%.

 

[divs4ever]

Underlying inflation is moderating.

and have this lovely old bridge to sell you in Sydney just 30,000 easy payments

 

[frugal.rock]

Proprietary crap from twatter and the witch bank ?
Really?
@eskys

 

[Dona Ferentes]

hmm ....well.. all ammo spent

 

[frugal.rock]

hmm ....well.. all ammo spent

View attachment 193485

Nothing to see here, it's all moderated out...

 

[Dona Ferentes]

back to sleep.

my algorithm is faster than your algorithm
I'm closer to the exchange

 

[frugal.rock]

I never woke up

 

[eskys]

Wow, no let up, keep sinking like a rock

 

[divs4ever]

Wow, no let up, keep sinking like a rock

let's see if it sinks in the right places for me

( have several orders in the market currently )

 

[Garpal Gumnut]

Will 0.25 make any difference?

gg

 

[Craton]

Will 0.25 make any difference?

gg

Guess that would depend on how much one is indebted or leveraged or number of mortages etc etc etc eh?

I'd also suppose that this, is just one of several small reductions the RBA is planning.

 

[eskys]

Will 0.25 make any difference?

gg

Should make a difference but market not impressed, why? Slipped away after announcement of rate cut.

Some sectors will benefit more than others but not showing any signs today, not that I could see anyway.

 

[Knobby22]

Should make a difference but market not impressed, why? Slipped away after announcement of rate cut.

Some sectors will benefit more than others but not showing any signs today, not that I could see anyway.

Foreign investors getting out?

 

[eskys]

Foreign investors getting out?

I was wondering KNobby, with the reporting season, some banks aren't doing that well. So maybe, just maybe, punters are thinking.....will the banks pass on the rate cut? And the cut weakens our dollar, should bring foreign money in, should it not? I don't know the answer to today's market, wish I knew. Or has the market gone too high????

 

[farmerge]

I was wondering KNobby, with the reporting season, some banks aren't doing that well. So maybe, just maybe, punters are thinking.....will the banks pass on the rate cut? And the cut weakens our dollar, should bring foreign money in, should it not? I don't know the answer to today's market, wish I knew. Or has the market gone too high????

@eskeys. I guess where the markets starts and finishes each day is only at the whim of the buyers and the sellers.
So is the markets too high?
Sellers more than likely would say no, it should be higher,
and conversely the buyers would have the opposite view.

 

[farmerge]

@eskeys If the thieving banks don't pass on the cut the hew and cry will be huge and I guess the Treasurer and his Mates would all be singing from the same song sheet also.
All together now: "the banks are greedy, greedy, greedy are all of the banks, they are just plain greedy.

 

[Knobby22]

I was wondering KNobby, with the reporting season, some banks aren't doing that well. So maybe, just maybe, punters are thinking.....will the banks pass on the rate cut? And the cut weakens our dollar, should bring foreign money in, should it not? I don't know the answer to today's market, wish I knew. Or has the market gone too high????

But as the dollar lowers foreign investors holding lose.
I noticed CSL jumped a lot today. Because it earns in foreign currency?

Guru Bob, (I mean @farmerge ) is probably right.