"slightly" is not enough
May 2015 rate cut leaked?
- Thread starter LukeLang
- Start date
"slightly" is not enough
The sky is falling.
Sorry, my mistake......I was in a glass roofed lift going up
Sorry, my mistake......I was in a glass roofed lift going up
The sky is falling.
Sorry, my mistake......I was in a glass roofed lift going up
Well we're not zero interest rates yet.
In some countries, it's negative.
How does negative interest rate work....
at the moment the RBA has pencilled in only 0.50% rate cut in 2015.
however, i do not expect rates to increase in the next 12-18 months. we don't have another mining or similar boom for rates to go back to usual. in fact, low rates are considered by many economists as the "new normal".
it pays to be vigilantly patient in regard to fixing rates. watch out for inflation, it it's too high (above 3% for a persistent period), the RBA will raise rates. at current weak wage growth, inflation is weak because the demand is not strong, even if the AUD is making imports more expensive.
last year, people were saying, the rates can never go lower. then when Feb15 came after a disappointing GDP result in late 2014 many were so surprised.
just because rates are low, doesn't mean it cannot go lower. and just because rates are low, it doesn't mean it has to go up just for the sake of going up. there must be a logic to it.
the only reason to raise interest rates is high inflation - and there's no reasonable projection of it going up above the target range for some time yet.
zero interest rate is not the absolute bottom. in other countries, it's negative.
oh and i forgot to mention, watch the US Federal Reserve carefully.
they have waaaay more influence on Aussie rates than people realize.
they have waaaay more influence on Aussie rates than people realize.
3 scenarios
1. Cut now and sprint to the finish now
2. Cut later and drag this out into a marathon
3. Cut now so we sprint, and then cut again later so we get a gatorade to keep going on the marthon
Either way, looks good to me.
1. Cut now and sprint to the finish now
2. Cut later and drag this out into a marathon
3. Cut now so we sprint, and then cut again later so we get a gatorade to keep going on the marthon
Either way, looks good to me.
I think early afternoon AEST so not long now I think.
I think there will be a drop of 0.25
I think it is 2:30 pm AEST. Less than an hour to go.
http://www.businessinsider.com.au/heres-your-10-second-guide-to-todays-rba-rate-decision-2015-5
- 23 of 27 economists polled by Bloomberg expect a 0.25% cut.
- Three of Australia?s big four banks expect a rate cut. NAB is only major forecasting rates to be left unchanged.
- Cash rate futures put the probability of 0.25% cut at 72% this morning. This is up substantially from 48% last week.
- This is the first time in 2015 that markets and economists are united in their view.
- Based on research Business Insider Australia has received most market participants expect the RBA to cut the cash rate by 0.25% and leave an easing bias in place ? this would indicate that the RBA still has room to cut the cash rate below 2.00% if necessary.
- Based on current market positioning and sentiment anything other than the aforementioned will likely see the Australian Dollar rally while bonds and stocks ? particularly those higher-yielding ? may soften.
Was just going to post it too, but you're too quick!
Nice one, I'm happy with the result.
I was reading this article earlier today.
http://news.domain.com.au/domain/re...erous-for-sydney-housing-20150505-1mfqqk.html
http://news.domain.com.au/domain/re...erous-for-sydney-housing-20150505-1mfqqk.html
You pay the bank for keeping your money.
Seriously? But why would you pay anything other than a standard fee - it's not like that money is leveraged...?
Not at our joint.My cousin in Brisbane was saying there was a noticeable increase in foot traffic at open houses after the last rate cut. I expect the Brisbane market to really heat up after this
We had 2 groups through on Sat.
