April's RBA Board Rate Cut Announced: 0.25%
- Thread starter Rixter
- Start date
RBA cuts rates by 25 points
Just in, the RBA cuts rates by 25 points to a cash rate of 3.0%.
Full media release: http://www.rba.gov.au/MediaReleases/2009/mr_09_06.html
Just in, the RBA cuts rates by 25 points to a cash rate of 3.0%.
Full media release: http://www.rba.gov.au/MediaReleases/2009/mr_09_06.html
I'd expect banks to pass on between 0.15 and .20.
I wonder if this will change the fixed rates being offered at the moment?
I wonder if this will change the fixed rates being offered at the moment?
nice for the banks - means nothing to Joe the plumber
for anyone interested, the rba website automatically updates the cash rate at 2.30pm (or whenever the rba states it will make the announcement)
- on the home page under rates&stats/policy interest rate.
- on the cash rate target page
which should make redundant the desire for multiple forumites to be first to post the news
maybe they can focus their energies on being first to report the banks' intentions.
- on the home page under rates&stats/policy interest rate.
- on the cash rate target page
which should make redundant the desire for multiple forumites to be first to post the news
maybe they can focus their energies on being first to report the banks' intentions.
Hey its all part of the fun and I know when anyone gets a hint of what the banks are up to it will be on here!
I doubt this will really do much for anyone. The property market is being driven by first home buyers at the moment. At this point further rate cuts won't stimulate property sectors any more. The FHBs are being slowed down by lenders deposit requirements more than anything else (90% LVRs & 5% genuine savings).
I think the RBA wants to reduce rates to try keep a step ahead of the slowing economy but they are probably reluctant to drop it too far as this would encourage 'stagflation'. Rates have already dropped so far, so fast, that there's not much more that can be trimmed.
I doubt we'll see much positive reaction from the banks. Those that do pass it all on will probably tweek something else in their products. This has already been done in many cases such as reducing discounts on professional packages.
I think the RBA wants to reduce rates to try keep a step ahead of the slowing economy but they are probably reluctant to drop it too far as this would encourage 'stagflation'. Rates have already dropped so far, so fast, that there's not much more that can be trimmed.
I doubt we'll see much positive reaction from the banks. Those that do pass it all on will probably tweek something else in their products. This has already been done in many cases such as reducing discounts on professional packages.
Probably playing a game of bank chicken. He who blinks first loses.
They're trying to suss out what the others are going to do and waiting for one of them to show the way.
Its peanuts really, so I reckon they'll go 15-25bp each.
Cheers,
Michael
I just came across this chart of historical interest rate moves...interestingly after almost every lowering cycle it has been over a year between the last rate cut and the first rate rise...ao we have at least a year of these low rates -
The following table is a history of the official cash rate for you to see where we have been...
Effective Date Change in cash rate
(Per cent) New cash rate target
(Per cent)
8 Apr 2009 -0.25 3.00
4 Feb 2009 -1.00 3.25
3 Dec 2008 -1.00 4.25
5 Nov 2008 -0.75 5.25
8 Oct 2008 -1.00 6.00
3 Sep 2008 -0.25 7.00
5 Mar 2008 +0.25 7.25
6 Feb 2008 +0.25 7.00
7 Nov 2007 +0.25 6.75
8 Aug 2007 +0.25 6.50
8 Nov 2006 +0.25 6.25
2 Aug 2006 +0.25 6.00
3 May 2006 +0.25 5.75
2 Mar 2005 +0.25 5.50
3 Dec 2003 +0.25 5.25
5 Nov 2003 +0.25 5.00
5 June 2002 +0.25 4.75
8 May 2002 +0.25 4.50
5 Dec 2001 -0.25 4.25
3 Oct 2001 -0.25 4.50
5 Sep 2001 -0.25 4.75
4 Apr 2001 -0.50 5.00
7 Mar 2001 -0.25 5.50
7 Feb 2001 -0.50 5.75
2 Aug 2000 +0.25 6.25
3 May 2000 +0.25 6.00
5 Apr 2000 +0.25 5.75
2 Feb 2000 +0.50 5.50
3 Nov 1999 +0.25 5.00
2 Dec 1998 -0.25 4.75
30 Jul 1997 -0.50 5.00
23 May 1997 -0.50 5.50
11 Dec 1996 -0.50 6.00
6 Nov 1996 -0.50 6.50
31 Jul 1996 -0.50 7.00
14 Dec 1994 +1.00 7.50
24 Oct 1994 +1.00 6.50
17 Aug 1994 +0.75 5.50
30 Jul 1993 -0.50 4.75
23 Mar 1993 -0.50 5.25
8 Jul 1992 -0.75 5.75
6 May 1992 -1.00 6.50
8 Jan 1992 -1.00 7.50
6 Nov 1991 -1.00 8.50
3 Sep 1991 -1.00 9.50
16 May 1991 -1.00 10.50
4 Apr 1991 -0.50 11.50
18 Dec 1990 -1.00 12.00
15 Oct 1990 -1.00 13.00
2 Aug 1990 -1.00 14.00
4 Apr 1990 -1.00 to -1.50 15.00 to 15.50
15 Feb 1990 -0.50 16.50 to 17.00
23 Jan 1990 -0.50 to -1.00 17.00 to 17.50
The following table is a history of the official cash rate for you to see where we have been...
Effective Date Change in cash rate
(Per cent) New cash rate target
(Per cent)
8 Apr 2009 -0.25 3.00
4 Feb 2009 -1.00 3.25
3 Dec 2008 -1.00 4.25
5 Nov 2008 -0.75 5.25
8 Oct 2008 -1.00 6.00
3 Sep 2008 -0.25 7.00
5 Mar 2008 +0.25 7.25
6 Feb 2008 +0.25 7.00
7 Nov 2007 +0.25 6.75
8 Aug 2007 +0.25 6.50
8 Nov 2006 +0.25 6.25
2 Aug 2006 +0.25 6.00
3 May 2006 +0.25 5.75
2 Mar 2005 +0.25 5.50
3 Dec 2003 +0.25 5.25
5 Nov 2003 +0.25 5.00
5 June 2002 +0.25 4.75
8 May 2002 +0.25 4.50
5 Dec 2001 -0.25 4.25
3 Oct 2001 -0.25 4.50
5 Sep 2001 -0.25 4.75
4 Apr 2001 -0.50 5.00
7 Mar 2001 -0.25 5.50
7 Feb 2001 -0.50 5.75
2 Aug 2000 +0.25 6.25
3 May 2000 +0.25 6.00
5 Apr 2000 +0.25 5.75
2 Feb 2000 +0.50 5.50
3 Nov 1999 +0.25 5.00
2 Dec 1998 -0.25 4.75
30 Jul 1997 -0.50 5.00
23 May 1997 -0.50 5.50
11 Dec 1996 -0.50 6.00
6 Nov 1996 -0.50 6.50
31 Jul 1996 -0.50 7.00
14 Dec 1994 +1.00 7.50
24 Oct 1994 +1.00 6.50
17 Aug 1994 +0.75 5.50
30 Jul 1993 -0.50 4.75
23 Mar 1993 -0.50 5.25
8 Jul 1992 -0.75 5.75
6 May 1992 -1.00 6.50
8 Jan 1992 -1.00 7.50
6 Nov 1991 -1.00 8.50
3 Sep 1991 -1.00 9.50
16 May 1991 -1.00 10.50
4 Apr 1991 -0.50 11.50
18 Dec 1990 -1.00 12.00
15 Oct 1990 -1.00 13.00
2 Aug 1990 -1.00 14.00
4 Apr 1990 -1.00 to -1.50 15.00 to 15.50
15 Feb 1990 -0.50 16.50 to 17.00
23 Jan 1990 -0.50 to -1.00 17.00 to 17.50
and what the market thought......
Over here jimmy
http://www.somersoft.com/forums/showthread.php?t=51392
And a better link for rates going back to 1959
http://www.loansense.com.au/historical-rates.html
Dave
http://www.somersoft.com/forums/showthread.php?t=51392
And a better link for rates going back to 1959
http://www.loansense.com.au/historical-rates.html
Dave
ING stated they will review this afternoon or tomorrow morning from memory.
