Government job is not monetary policy, that is the RBA job, they have the task of expand and contract money supply...
Government job is fiscal policy, how they spend and collect money....
Interest Rates
- Thread starter Largesse
- Start date
-
- Tags
- interest rates rba
Government job is not monetary policy, that is the RBA job, they have the task of expand and contract money supply...
Government job is fiscal policy, how they spend and collect money....
Julia
In Memoriam
- Joined
- 10 May 2005
- Posts
- 16,986
- Reactions
- 1,973
Hallelujah! Someone actually notes that only a minority of Australians have home loans. To listen to the politicians, one would imagine that 99% of the electorate have massive and crippling home loans, such is the diatribe directed toward the banks if they fail to pass on full interest rate cuts by the Reserve Bank.
Far more people have money in savings accounts, but we never, ever hear about the benefits to this majority of interest rates remaining reasonably high.
Imo David Murray was right today when he accused the government of political interference in bank business. Swan is way overstepping his role.
- Joined
- 8 April 2008
- Posts
- 871
- Reactions
- 0
Swan shouldn't have anyting t complain about. He wanted the bnks to pass on the RBA rate cut in full. Well the rate cut this time is zero and that should be easy for the banks to pass on in full (lol)
- Joined
- 28 October 2008
- Posts
- 8,609
- Reactions
- 39
Wayne Swan is an idiot.
Him and Joe Hockey together don't even rate as a real treasurer's backside.
It's just too depressing to think about.
Him and Joe Hockey together don't even rate as a real treasurer's backside.
It's just too depressing to think about.
- Joined
- 2 June 2011
- Posts
- 5,341
- Reactions
- 242
Wayne Swan is an idiot.
Him and Joe Hockey together don't even rate as a real treasurer's backside.
It's just too depressing to think about.
I'm watching Hockey on Lateline right now and he's just useless. What's worse is that when compared to Swan he seems like a fat version of Adam Smith.
- Joined
- 28 October 2008
- Posts
- 8,609
- Reactions
- 39
He might be a nice guy and all, but economically, there's less clout there than in a wet one dollar Monopoly note.
- Joined
- 3 July 2009
- Posts
- 27,450
- Reactions
- 24,249
But I did notice today Ubank went from 6.11% to 5.91% for 6month deposits.
Thanks Wayne, the banks did drop their rates. LOL,LOL
Thanks Wayne, the banks did drop their rates. LOL,LOL
- Joined
- 28 October 2008
- Posts
- 8,609
- Reactions
- 39
TED has recently been reducing his Spread a bit.
- Joined
- 25 July 2010
- Posts
- 1,120
- Reactions
- 284
It's days like this I truly miss Costello...
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,432
- Reactions
- 6,420
Frankly
My view is that no interest rate cut is a message to banks
If your not going to cut rates we aren't going to just cut rates for you to take advantage of without passing it on.
The banks are becoming more dictatorial with news this morning that they could rise rates.
Can't wait for more choice.
My view is that no interest rate cut is a message to banks
If your not going to cut rates we aren't going to just cut rates for you to take advantage of without passing it on.
The banks are becoming more dictatorial with news this morning that they could rise rates.
Can't wait for more choice.
You maybe correct. However I will quote you an extract from "Trading the Sharemarket the ASX way."
"What causes interest rates to change?
Interest rate management is called monetary policy. One of the purposes of monetary policy as used by the Reserve Bank of Australia (RBA) is to control inflation. While the government sets the objectives of monetary policy, it is the RBA that enacts the mechanical aspects of the policy to change interest rates".
The basic objective of the RBA is contained in the Reserve Bank Act 1959(Cth). The act gives the RBA the responsibility of achieving price stability and promoting the economic prosperity and welfare of Australians.
I understand its tough times, but the government should not be bashing everybody and sundry who do not agree with them. (BANKS,VOTERS,COALITION,MEDIA) That's really not a good look....Sort out your own problems(leadership instability).
Personally I believe the weakness is implementing an old act into a "two speed economy). The equation used "is outdated".
joea
Tech/a
I agree.
Actually the banks and Swan have been shadow boxing for some time about the rate
decreases.
Why? Because if you approve 3 - 4 rate decreases in a row of 0.25%, it actually means that somewhere they should have moved 0.5%.
And also if you move 3 - 4 times its means we are not going as well as Swan makes us believe.
And lastly Swan know that the economy is not as good as he states, and the rates have to be passed on to try and help the retail sector to keep jobs.
joea
- Joined
- 2 June 2011
- Posts
- 5,341
- Reactions
- 242
The paragraph is a bit poorly worded and could confuse readers. The objectives are defined in the RBA Act as being:
- the stability of the currency of Australia;
- the maintenance of full employment in Australia; and
- the economic prosperity and welfare of the people of Australia.
The Bank then formulates and sets monetary policy based on these three (very) broad objectives defined by the Government.
http://www.smh.com.au/business/bank-tips-four-rate-cuts-this-year-20120531-1zkvr.html
No doubt this will be a part of the Labor campaign for re-election.
i.e. "We reduced the interest rates".
joea
No doubt this will be a part of the Labor campaign for re-election.
i.e. "We reduced the interest rates".
joea
numbercruncher
Beware of Dropbears
- Joined
- 12 October 2006
- Posts
- 3,136
- Reactions
- 1
Our American mates are getting an even better deal - and RE at 1/3rd the cost of ours to boot ....
http://money.cnn.com/2012/05/31/real_estate/mortgage-rates/index.htm
http://money.cnn.com/2012/05/31/real_estate/mortgage-rates/index.htm
numbercruncher
Beware of Dropbears
- Joined
- 12 October 2006
- Posts
- 3,136
- Reactions
- 1
FYI - More households have Mortgages than households who dont ....
So to say the Minority of Australians have Home loans maybe Technically correct its terribly misleading.
- Joined
- 6 March 2008
- Posts
- 235
- Reactions
- 0
and of the ones with homeloans even fewer are +80%lvr
- Joined
- 24 December 2010
- Posts
- 1,154
- Reactions
- 50
So we would all have to agree now, that the RBA has held the rates up for to long and now they may get into panic mode. The rate decreases are 6 months behind when it should have happened.
The June sales will now be make or break for some companies.
And as it has been discussed before, a rate decrease(alone) will not solve all the problems we have.
joea
The June sales will now be make or break for some companies.
And as it has been discussed before, a rate decrease(alone) will not solve all the problems we have.
joea
