Place your bets. RBA meets today.

[murtagh]

I've guessed 150 points.

The RBA has signalled that they are willing to cut heavily with the last few "surprises". Inflation is coming down, just as they wanted and the last few cuts have been about showing that they really do mean business.

I expect this cut to be no different - people have already floated 125 points as possible, so they will want to outdo even that.

And the way fixed rates have been dropping in the past fortnight, I reckon someone out there knows something we don't.

Just guessing though.

 

[Francesco]

I voted 100 points with the idea of a follow-up drop in January when RBA may break with schedule and meet in January 2009 if things get worse economically.

 

[boods99]

I said 100 points...if it is any more, I will give the guy in the next cubicle a big kiss...
hopefully he won't punch me in the brain

 

[allblack]

I've said 150bp all along. With economic news from last couple of days I'm more confident of this. It's always good when the stock market is falling the day the reserve bank meet!!. If the banks pass on 1.04% I will be happy. I wouldn't have dream't 3 months ago my property portfolio would be positive and my variable rate would be 6%.

 

[Rixter]

150bp because banks wont pass on the full cut, its coming into Xmas to encourage consumer spending and RBA's not scheduled to sit again for another 2 months in Feb 2009.

 

[tess85]

I voted for .75% but would not be surprised if they dropped 1%.

 

[josko]

I think because the RBA know the banks won't pass on the full cut they will go at least 100bp's.

Regards JO

 

[silversands]

I put forth my 125 hunch in a similar thread a while back and I haven't changed my guesstimate but I am also wondering, if lower inflation may affect this. At the end of the day, any drop will bring needed relief and be welcomed.

 

[silversands]

Just noticed someone has hedged that they will raise the rates! Are you serious? Care to tell us why?

Genuinely curious

 

[james_w]

I voted 100 points guess should check who was right soon lol

 

[DCI]

I'm going all out and saying 175bp.
Jan normally very slow and RBA not meeting,so really looking at major kick start for ecconomy in 2009.
Given that banks will absorb 20-30 of that.
Flip side could lift by .5 only to spook market and create sudden, but limited frenzy on housing...
Money on both sides....

 

[Bill.L]

Hi all,

100, so they have ammunition for February.

bye

 

[boomtown]

Well seeing as 100 is the consensus view - its definitely wrong ! (even though I voted for it !)

 

[VYBerlinaV8]

I think 100bp. I don't mind that the banks having been passing all the rate cuts along in full. I think having our major financial institutions able to turn a profit at this time is good for the economy generally.

 

[oc1]

50 bp....they can always hold an emergency meeting in January if needed. If it is to be on the higher side then 150bp.

 

[Rixter]

they can always hold an emergency meeting in January if needed. .

Yeah is only ever been done twice before. Both in times of turmoil (like now), as one would expect.

 

[Aaron Sice]

it will be interesting for sure - with 5 mins to go now.

do they slash rates by 100bp+ in the hope of a Dec/Jan stimulus, or play the "steady as she goes" card and go for 75bp and another 0.75bp in Feb....?

 

[oracle]

I voted 100 basis points.

The reason being that most banks will only pass 70-80% of that cut to the customers. And I believe the RBA is looking to pass on around atleast 75 basis points to the people.

Cheers,
Oracle.

 

[Rixter]

RBA Verdict is just in - its a cut of 100 bp down to 4.25%!

You little ripper...show me the money

 

[Twitch]

100 points it is