They were in denial last year too, which didn't work out so well for them. Don't think they'd risk being in denial again.
100% chance of .5% decrease in rates in March
- Thread starter Nth Brisbanite
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They were in denial last year too, which didn't work out so well for them. Don't think they'd risk being in denial again.
They were in denial last year too, which didn't work out so well for them. Don't think they'd risk being in denial again.
Exactly. I can't see them not cutting rates at all.
Regards JO
After the events of the last 24 hours I'm sure the RBA members will be asking themselves should we go higher than 0.5, not should we cut at all.
Got a friend like this. Often ask him what he thinks and then do the opposite. He has a knack for getting most things wrong but a good friend.
0.25% Guess I woulda lost my dough
Oooops misheard new from other room. Zero, Zilch, Zip. No movement.
Ummm I thought the time machine was to be shared amongst Steve's. I have now finished with it as I now appear to be a Guru for my call of no movement. I shall rest on my laurels now and have retired from predictions.
Just a pity that it's wasn't worth anyone reading my post due to a lack of Kudos
Oooops misheard new from other room. Zero, Zilch, Zip. No movement.
Ummm I thought the time machine was to be shared amongst Steve's. I have now finished with it as I now appear to be a Guru for my call of no movement. I shall rest on my laurels now and have retired from predictions.
Just a pity that it's wasn't worth anyone reading my post due to a lack of Kudos
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Hi Guys
Have I told you that no rate cut in this thread?
Have I told you that no rate cut in this thread?
Not good news for the Aussie Dollar.
Sir, did you see "over time". At present, it is clear the inflation is up. RBA machine acts on flation. I have long argued their stupidity. However, it works if you predict the rates up or down.
I'm saying they didn't leave rates on hold this time because they are worried about inflation. They have already made 400 points in cuts and are waiting for that to sink in a bit more, plus they don't feel Aust. has been hit as hard by the crisis as shown by retail figures etc, and they are probably also trying to leave themselves a bit of room to move if things do get materially worse in the coming months. Even if inflation was up at the moment, that wouldn't have stopped them from dropping rates again if they felt they needed to - and that's my point.
Now if on the other hand the stats they had at hand showed the 2 statements in bold above were turned around ie. Aust. has weakened much more than other countries, and the Aust. economy was contracting at a much faster rate than elsewhere. Then whether inflation had inched up or not, they still would have cut rates further. So yes, they did leave rates on hold, but I don't believe (yet) that it's because they're too concerned about inflation right now.
Huh?
I would have thought a higher Aus cash rate would protect our dollar?
Cheers,
Michael
BIG Bikies
All I have to say about today is dratts!
All I have to say about today is dratts!
BIG Bikies
All I have to say about today is dratts!
Yep, more than you average chocolate chip cookie
And it did. The A$ is up 2.5%. Not good for us gold bugs or the Aussie exporters but an indication that we are not as bad as others and that's OK.
Four years ago I said we'd reach parity with the US$ and we nearly did, but I consider that an anomaly. Australia and Canada will prove to be the world's best economies. (Provided our respective governments don't stuff it up and both are capable of doing that.)
Maybe we can let you win that one by default Sunfish When I was in Vietnam in June, I purchased some clothing in Aus dollars. They wanted $25 dollars Australian or $26 American dollars! You must've been pretty close!
When I was in Vietnam in June, I purchased some clothing in Aus dollars. They wanted $25 dollars Australian or $26 American dollars! You must've been pretty close!And it did. The A$ is up 2.5%. Not good for us gold bugs or the Aussie exporters but an indication that we are not as bad as others and that's OK.
Four years ago I said we'd reach parity with the US$ and we nearly did, but I consider that an anomaly. Australia and Canada will prove to be the world's best economies. (Provided our respective governments don't stuff it up and both are capable of doing that.)
Sunfish not sure if you follow Gartman but he is pretty much saying what you say, one part of his current strategy that he is telling his sophisticated investors is to go two units long on younge countries (ie Australia and Canada) and hedge the risk by being two units short on old commodity importing countries (but this is only part of the strategy so there are risks in only adopting a part of a total hedging strategy).
