- Joined
- 6 September 2008
- Posts
- 7,676
- Reactions
- 68
I don't think so, if they had have dropped rates earlier more people may have bought into the housing market which was going to tank anyway.
Interest Rates
- Thread starter Largesse
- Start date
-
- Tags
- interest rates rba
I don't think so, if they had have dropped rates earlier more people may have bought into the housing market which was going to tank anyway.
- Joined
- 5 October 2011
- Posts
- 896
- Reactions
- 0
I've come into this late, but MO on rate cuts is they achieve sweet f/a. if you can name me one person who is sitting there going, you know what, if the cba cuts rates by 25 basis points im gonna do it! im gonna go and buy that thing that I want. it just doesnt work like that. and its the same reason stimulus wears off so fast. you CANNOT make people spend. if you're already looking at spending, then the stimulus may trigger you to do so, or a couple of rate cuts PERHAPS may be a slight influence to tip you over that purchase line. but in no way does it make people want to spend when they already didn't want to. if an entire generation is sick of spending, there is no changing their minds.
sorry if ive missed any important points, havent read back.
Jobs key to rates
RBA deputy governor Philip Lowe said today that further interest rate cuts would hinge on the strength of the labour market, a view echoed by economists.
Macquarie senior economist Brian Redican said weakening employment is on the horizon and will likely prompt the RBA to cut again.
"The RBA will cut when unemployment rises above 5.25 per cent," he said. "We think unemployment will rise in next couple of months and so expect a rate cut in May."
"For the RBA, its all about unemployment rather than GDP growth at the moment."
The jobless rate is currently at 5.1 per cent, with a consensus of analysts expecting it to hit 5.2 per cent when the numbers are updated tomorrow by the ABS.
Today's weak GDP growth figures vindicate the central bank's decision to slice borrowing costs at the end of last year, analysts said.
"A 0.4 per cent outcome illustrates the fairly soft growth we saw late last year and justifies why the Reserve Bank cut in November and December, said National Australia Bank senior markets economist Spiros Papadodoulos.
The RBA yesterday opted to leave interest rates on hold for a second consecutive meeting, saying borrowing costs are ''appropriate" for the current conditions. It left open the possibility of further rate cuts if needed to shore up the economy.
Read more: http://www.theage.com.au/business/g...-cut-chance-20120307-1ujet.html#ixzz1wcT4qAe4
They are concentrating on the unemployment figure which is at least 2-3% too low.
Go to Roy Morgan.
There lies the problem
Glen48
Money can't buy Poverty
- Joined
- 4 September 2008
- Posts
- 2,444
- Reactions
- 3
Think the RBA could now drop the rate to 1% or less won't make any difference just watch what's going on in USA, 1in 4 in USA is under water and house prices are going down still.
- Joined
- 24 December 2010
- Posts
- 1,154
- Reactions
- 50
So in order for a lot of us to have cheaper mortgages, some of us will need to lose our jobs...
- Joined
- 8 May 2010
- Posts
- 1,202
- Reactions
- 0
Actually I think the way for us to have cheaper mortgages is to not borrow so much and create a bubble.
Let the bubble pop government, it will be better in the long term.
MW
- Joined
- 14 February 2005
- Posts
- 15,220
- Reactions
- 17,299
Outside of mining and mining areas, the general economy has been pretty much stuffed for quite a while now.
- Joined
- 25 February 2011
- Posts
- 5,688
- Reactions
- 1,231
Ubank online 'high' interest savings account now 4.91%
Knowing you Tyler, I've no doubt that you'll have already been shopping around and found a better deal, but I thought I'd share the following just the same:
When I visited my local CBA branch this morning, they were advertising an interest rate of up to 5.25% p.a. on their "GoalSaver" account - subject to the following conditions:
I believe that the other major banks will probably have similarly competitive account types and interest rates.
- Joined
- 24 December 2010
- Posts
- 1,154
- Reactions
- 50
Hey! Very interesting!
I actually just assumed Ubank automatically beated everyone else and so didn't think about shopping around. That CBA offer does seem a little tempting, although limiting it to one withdrawal per month is a bit of a downer.
I will think more about it - thanks!!!
Julia
In Memoriam
- Joined
- 10 May 2005
- Posts
- 16,986
- Reactions
- 1,973
- Joined
- 6 September 2008
- Posts
- 7,676
- Reactions
- 68
It's academic really, a bit like petrol prices, people race to save 2c a litre and find it saves $2 a tank.
Not really a life changer.
Not really a life changer.
- Joined
- 24 December 2010
- Posts
- 1,154
- Reactions
- 50
It is better to have $2 in your pocket than someone else's.
- Joined
- 8 May 2010
- Posts
- 1,202
- Reactions
- 0
Yeah I think RAMS has the highest at the moment, but could be wrong.
Haven't read the fineprint,
will over the next week as both Usaver accounts are pretty much full and I don't want any more term deposits, even though they are better interest rates than you can get with usaver etc, I want to have the money in case there is a shock to the system
MW
Haven't read the fineprint,
will over the next week as both Usaver accounts are pretty much full and I don't want any more term deposits, even though they are better interest rates than you can get with usaver etc, I want to have the money in case there is a shock to the system
MW
That appears how it supposed to work from that media coverage.
Looks like a "shake out" to release workers to the mining industry. The whole problem is they
do not want to go , relocate or FIFO.
I think the RBA have failed miserably in their " job description", and often wonder why?
It is certainly not explained in their monthly minutes.
One would think that with the Government wasting so much money, the RBA'S timing would need to be spot on.
In attempting to understand the RBA, I can only offer their style is similar to "they rush to shut the gate when the horses have escaped".
joea
- Joined
- 6 March 2008
- Posts
- 235
- Reactions
- 0
- Joined
- 24 December 2010
- Posts
- 1,154
- Reactions
- 50
I like that!
- Joined
- 5 October 2011
- Posts
- 896
- Reactions
- 0
+1, it may be ignorant of me, but I have never gone in search of the best savings rate, as unless you have a sizable amount in there the difference really doesn't matter to me. if you are talking thousands a year difference then im interested, but otherwise...
Julia
In Memoriam
- Joined
- 10 May 2005
- Posts
- 16,986
- Reactions
- 1,973
Agree. And you've spent time and additional petrol running round to get that small saving.
- Joined
- 2 June 2011
- Posts
- 5,341
- Reactions
- 242
$2/week is $104/year. And what's that, basically a night out. Infact, the way Sydney is now it's about half a night out. It won't change your life. Plus, you waste all that petrol hunting for the cheapest petrol, as Julia pointed out.
- Joined
- 2 July 2008
- Posts
- 7,102
- Reactions
- 6
Those looking to park their money in a safe place to ride out the approaching storm should avoid Spanish Bonds. German Bods are a safer bet, but to be absolutely sure buy Swiss bonds where you have to actually pay them to borrow your money.
http://www.businessweek.com/ap/2012-06/D9V4B8380.htm
http://www.businessweek.com/ap/2012-06/D9V4B8380.htm
