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  1. boz

    50 bp cut at april RBA meeting

    Just to warn the readers that this is a very shallow analyisis: main weak point is that no indication of length term in fixed interest rates loans (it is very different if you compare the 3 years loan with 10 years or 30 years), second is that the reduction in basis point need to be specified...
  2. boz

    50 bp cut at april RBA meeting

    Not sure I understand your post WW, how do you have the AUD linked to gold? is that from AUS gold mining shares? ALso if the US$ is falling how can you benefit with the AU$ (that would obviously be rising)?
  3. boz

    50 bp cut at april RBA meeting

    It doesn't work anymore in this maret, a couple of weeks ago NZ cut rate by 0.5% to 3% and the NZ$ gain 4 cent against Australia (no rate cut). The thing is that often market see rate cut as getting closer to the point of recovery and a fact that central bank see no risk (inflation) in reducing...
  4. boz

    50 bp cut at april RBA meeting

    I mostly agree with you and once interest rates are down for a while banks will not be much bothered about looking after their deposit and they'll drop interest rates on any short term bank deposit and if they get short of cash they'll just beg at RBA for more money in exchange of securities (or...
  5. boz

    50 bp cut at april RBA meeting

    I am pretty sure that the RBA cash rate would have no impact on 3+ year term mortgage rate or bond rate. For example today markets are pricing a 50 point cut and the 10 year bond is still at 4.35% yield. It is quite interesting what is happening in UK where CB start the quantitative easing and...
  6. boz

    50 bp cut at april RBA meeting

    That is really funny, I give you kudos for that, you are also right about it. It could be that those great property commentator are not that great and have no clue about economy, finance and markets...It could also be that to be a great commentator you don't need to be good in anything of above...
  7. boz

    50 bp cut at april RBA meeting

    seems 50 basis point is the way to go for RBA at the April meeting. In today RBA statement following last week meeting the central bank see scope of further cut in the CB overnight cash rate. From bloomberg so 54% are for 50 bp, I am with that and we'll just get ahead of NZ again ;)
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