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    When will interest rates go down???

    What can Costello do? The banks are well within their rights to increase or decrease discounts as they wish. The only thing stopping them is competition. I think the hit to bank profits from subprime is real, though. There have been reports of the majors moving off-balance-sheet entities back...
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    When will interest rates go down???

    The interesting thing now is, even if the RBA, say, drops rates, your mortgage rate may not drop. All the banks have to do is decrease the 'discount' they give. I would say it's likely for new borrowers. Alex
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    When will interest rates go down???

    I stand corrected. It was only the discount rate, not the more important Fed funds rate. Which means the effect is just to stop a 'run on the bank', or in the current market, to stop liquidity from drying up altogether. The Fed has to be concerned about moral hazard here. After all, isn't the...
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    When will interest rates go down???

    They already did. 0.5% on Friday. Alex
  5. A

    When will interest rates go down???

    When the RBA thinks inflation will fall below 2% in the medium term. Alex
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