May 2015 rate cut leaked?

A negative interest rate means that the central bank charges for holding deposits. The intention is that it forces institutions to keep money in circulation rather than hoarding it.

There's a piece over at Bloomberg explaining it.

http://www.bloombergview.com/quicktake/negative-interest-rates

I'm not sure if the interest rate cut will benefit Australia too much, but on a personal level a lower exchange rate is beneficial to me. It means I'll get more dollars for my pounds when I bring money over.
 
The AUD has strengthened quite well after this cut, not weakened.
They have cut enough, no more please. Would prefer to see rates rising again sooner than later.
 
Why is AUD strengthen when rate is cut ? This doesnt make any sense

I think this will be the last cut "The Federal Reserve is expected to start increasing its policy rate later this year, but some other major central banks are stepping up the pace of unconventional policy measures."
 
With median house prices going up "like crazy" already, if housing/land cost rises were factored into CPI calculations, we would have really bad inflation numbers, which point more to rate rises rather than rate drops. RBA should actually factor in this into their inflation calculations and interest rate response.

Pretty obvious since the last rate cut there is a "mole" in the RBA hehehe...
 
negative interest rates will be on their way through the deposit tax being proposed as part of the budget. Basically the banks will pay the government to hold your deposits which in turn will be passed onto those with deposits.
 
windyzz said:
Why is AUD strengthen when rate is cut ? This doesnt make any sense
Click to expand...
"The RBA saw improving trends in household demand and growth in the employment sector, hinting that the chances of further easing in the upcoming months may be relatively low" - DailyFX
 
joeExpat said:
"The RBA saw improving trends in household demand and growth in the employment sector, hinting that the chances of further easing in the upcoming months may be relatively low" - DailyFX
Click to expand...
Which areas/industries showed employment growth? (other than possibly building of new dwellings currently)

UPDATE: Just heard on ABC radio news that Myer is possibly going to be closing up to 20 of it's "signature stores".
 
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