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View Full Version : Reserve Bank of Australia Cuts Interest rate 1%


Howard Hughes
7th Oct 2008, 05:51
Fairly drastic move by the reserve bank, see here! (http://business.smh.com.au/business/rba-stuns-with-massive-rate-cut-20081007-4vi1.html):eek:

Crosshair
7th Oct 2008, 06:20
This worries me. Chaotic movements of this sort are not good. The move indicates that the RBA has no idea what's happening.

Like flying: Small corrections, not wild control inputs. If you're using wild inputs, something is wrong and you're behind.

Jet_A_Knight
7th Oct 2008, 06:27
Just more margin for the Australian banks to make by not passing on the rate cut.
:mad: [email protected]

Buster Hyman
7th Oct 2008, 06:34
Westpac has cut by .8 of a % (80bp), Aussie by .75.

Howard Hughes
7th Oct 2008, 07:29
I was only expecting .5% to be passed on! If the banks pass on .7 to .8 to consumers that is a good result!:ok:

Wod
7th Oct 2008, 08:42
Sadly, if I may paraphrase the RBA rationale for going to 1% in North Americanese:

"There's a trainwreck coming down the turnpike, so with businesses going broke and more folks out of work, inflation is not the issue here".

Or something like that there.

flynverted
7th Oct 2008, 11:20
Thieving pricks at CBA will probably raise thier rates for the mortgsge holders. Bastards. :mad::{:=:ugh:

Takan Inchovit
7th Oct 2008, 11:58
Thieving pricks at CBA will probably raise thier rates for the mortgsge holders. Bastards.
Amazingly enough, they are giving .8% back to mortgage holders. But if they had not given out loans as if they were having a lolly scramble, all this wouldn't be necessary.

Howard Hughes
7th Oct 2008, 12:05
But if they had not given out loans as if they were having a lolly scramble,
OIY! They've given me three loans...:ooh:

ampclamp
7th Oct 2008, 12:10
Yep, but blame the yank banks (its jet blast ok, blame the americans brits etc) for making their agents the vampire in the blood bank by writing loans for folks who clearly could not afford them, no duty of care no credit checks.Bonuses for the amount of loans never mind the consequences of a rising rate environment.Bugger me, rates go up bloody hell what now!!
Our banks in oz are in much better shape with much lower delinquent loans.I would rather they make a profit than go broke lending for less than the libor or cash rate.

Howard Hughes
7th Oct 2008, 12:12
Not everybody should be a 'homeowner'! Some people just do not have the fiscal responsibility...:rolleyes:

ampclamp
7th Oct 2008, 12:28
thats true HH but it is also unscrupulous to lend to people who have no idea they cant afford a loan.

Track Coastal
7th Oct 2008, 13:33
Look at the customers.

Australia is nothing more than a quarry/open cut mine.

Watch the Shanghai index, watch the Hang Seng.

Then when the Chinese MANUFACTURERS go to contraction, watch Rudd/Turnbull.

The extra release is utter utter panic because people are not 'consuming' at the appropriate rate.

Google great depression+consumption

Metro man
7th Oct 2008, 14:15
I wonder how long we'll need to wait to actually see the cut in repayments on our mortgages. Goes up straight away when the interest rates increase, not quite as quick when they go down.:hmm: