Well, some certainly were in the know that the 1% cut was coming, for I knew something was up by the why the All Ords was rallying all morning, for the 0.5% was already factored in. This is something that really burns me. So much for equal playing fields !! Does anyone else think this or feel this way??
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Good for exporters, however don't our banks find it (even) harder to source their borrowing from o/s, as overseas lenders are less willing to invest in a currency that is rapidly losing value?
Anybody have any thoughts on savings/term deposits on the back of this? Are they going to use the opportunity to shaft the savers? Or are they still going to be so desperate for deposits on their books they keep them (relatively) high?
Completely agree, this idea that central banks can fine tune the economy by manipulating interest rates is just silly. It was the US fed that sent rates down to 1% after the tech-wreck that created this massive bubble.
Eventually, I think the US fed will lose its ability to control interest rates. With their massive foreign debt I just can't see the chinese, saudis & japanese continue to buy up all this paper. I can understand the reasoning short term, but medium term they are hurting themselves with negative REAL returns
Let the free market set interest rates (probably never would have this bubble, as who would lend below the rate of inflation?)
I remember taking out a loan for a property back when the AUD was down in the 50 cent range and I had no problem in getting money from the bank. So I'm not sure if our banks find it harder to source capital or not.
Sorry can't help you in regards to bank deposits, I put all my money into my offset account.
Hey Chops...
I am with you on this one - now they only have 6 more tries before they run out of options while 50bps would have bought them more time.
But on the other hand the sooner we get to the bottom the sooner we can start the actual recovery process. Honestly I am sick of this up and down all the time. People (me including) get itchy when they are out of the market for too long then prematurely jump right back in at the lightest hint of good news only to realise that "yes" it can still get lower.
A lot of good that does you if your spending power is slashed by 30% in a month. Only for imported goods? Oh wait; that's everything isn't it
What are they doing? They're finally admitting they got it horribly wrong with all their trigger-happy 25 bps rises over the last couple of years, particularly those ones earlier this year which has pushed us to the brink of recession.
The writing was on the wall for all to see but the RBA.
Interest rate cut
- Thread starter Julia
- Start date
I'm happy to see rate cuts as it puts more downward pressure on the AUD. The dollar has also fallen significantly against the pound also which I am personally stoked with as I get paid in pounds.
Hey pepperoni that uae job must be looking more attractive with almost a 30% increase in pay since the original offer.
Hey pepperoni that uae job must be looking more attractive with almost a 30% increase in pay since the original offer.
kitehigh said:
Good for exporters, however don't our banks find it (even) harder to source their borrowing from o/s, as overseas lenders are less willing to invest in a currency that is rapidly losing value?
Anybody have any thoughts on savings/term deposits on the back of this? Are they going to use the opportunity to shaft the savers? Or are they still going to be so desperate for deposits on their books they keep them (relatively) high?
Completely agree, this idea that central banks can fine tune the economy by manipulating interest rates is just silly. It was the US fed that sent rates down to 1% after the tech-wreck that created this massive bubble.
Eventually, I think the US fed will lose its ability to control interest rates. With their massive foreign debt I just can't see the chinese, saudis & japanese continue to buy up all this paper. I can understand the reasoning short term, but medium term they are hurting themselves with negative REAL returns
Let the free market set interest rates (probably never would have this bubble, as who would lend below the rate of inflation?)
Glen48
Money can't buy Poverty
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.25% work out to 68 cents per day for every $100K so the grand total will be $ 4.76 per week inflation running at 20 degree incline OZ dollar diving all looks good.
I remember taking out a loan for a property back when the AUD was down in the 50 cent range and I had no problem in getting money from the bank. So I'm not sure if our banks find it harder to source capital or not.
Sorry can't help you in regards to bank deposits, I put all my money into my offset account.
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we should see more support for some of the high yeilding stocks now as some move away from cash and into higher yeilding stocks, a few I would look at is, APA, MCW, FKP etc etc. and I will probally be ripped for this but I think BBI is a fantastic yeilding stock at it's current price.
Westpac cuts home loan rate by 0.8%
http://tradingroom.com.au/apps/view_article.ac?articleId=227606
Umm that was quick
http://tradingroom.com.au/apps/view_article.ac?articleId=227606
Umm that was quick
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Go kiwi
The RBNZ has a meeting on the 23rd I think... rates are likely to be slashed by half a percent... some speculation about .75%... yeahhh hahhehghhghgh... go kiwi....
.^sc
The RBNZ has a meeting on the 23rd I think... rates are likely to be slashed by half a percent... some speculation about .75%... yeahhh hahhehghhghgh... go kiwi....
.^sc
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imho.. 1% was overdone...
should have given the market what they wanted... 50bp... the effect would have been the same...
save the extra 50bp for when the Aussie market is screwed again...
eg.. why overdose on andrenaline when half would have restarted the patient's heart?
should have given the market what they wanted... 50bp... the effect would have been the same...
save the extra 50bp for when the Aussie market is screwed again...
eg.. why overdose on andrenaline when half would have restarted the patient's heart?
Nyden
G.E. Money Genie
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What is the RBA doing? Are they out of their freaking minds? Can they not see the huge dollar decline; and what that is going to do to inflation?
... ugh, I'll be opening a foreign currency account this week, I'm jumping ship with regards to the AUD ... once it hopefully picks up a tad
Sorry gents, Australian economy is stuffed
... ugh, I'll be opening a foreign currency account this week, I'm jumping ship with regards to the AUD ... once it hopefully picks up a tad
Sorry gents, Australian economy is stuffed
Hey Chops...
I am with you on this one - now they only have 6 more tries before they run out of options while 50bps would have bought them more time.
But on the other hand the sooner we get to the bottom the sooner we can start the actual recovery process. Honestly I am sick of this up and down all the time. People (me including) get itchy when they are out of the market for too long then prematurely jump right back in at the lightest hint of good news only to realise that "yes" it can still get lower.
Nyden
G.E. Money Genie
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A lot of good that does you if your spending power is slashed by 30% in a month. Only for imported goods? Oh wait; that's everything isn't it
Hmmmm having read a number of these forums - I suspect that most of you would have found something to bitch about no matter what the fed did. All negative of course, as I am quite sure that the doom and gloom gets most of you off each day
Of course I secretly hope that a large portion of that blood is theres!
Of course I secretly hope that a large portion of that blood is theres!
What are they doing? They're finally admitting they got it horribly wrong with all their trigger-happy 25 bps rises over the last couple of years, particularly those ones earlier this year which has pushed us to the brink of recession.
The writing was on the wall for all to see but the RBA.