1% drop!!!!!!!!!!!!!!!!!!! YAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Place your bets. RBA meets today.
- Thread starter bruxism
- Start date
The result is in and its 100 basis points!
http://www.rba.gov.au/MediaReleases/2008/mr_08_27.html
Cheers,
Michael
PS 5 posts with the result all within seconds of each other. I guess there's a few of us here on Somersoft who were a bit interested in this result!
http://www.rba.gov.au/MediaReleases/2008/mr_08_27.html
Cheers,
Michael
PS 5 posts with the result all within seconds of each other. I guess there's a few of us here on Somersoft who were a bit interested in this result!
Kinda funny how many of us are online and watching at the exact moment the decision is released!
This takes us to equaling a historical low (of 20 something years)?
This takes us to equaling a historical low (of 20 something years)?
"MEDIA RELEASE
No: 2008-27
Date: 2 December 2008
Embargo: For Immediate Release
STATEMENT BY GLENN STEVENS, GOVERNOR
MONETARY POLICY
At its meeting today, the Board decided to reduce the cash rate by a further 100 basis points, to 4.25 per cent, effective 3 December 2008.
Recent actions by governments and central banks to stabilise their respective financial systems have begun to take effect. Nonetheless, financial market sentiment remains fragile, as evidence accumulates of weak economic conditions in the major countries and a significant slowing in many emerging countries. Commodity prices have fallen further. This, combined with the likelihood of below-trend growth in the global economy, suggests that global inflation will moderate significantly in 2009.
The Australian economy has been more resilient than other advanced economies, but recent data nonetheless indicate that a significant moderation in demand and activity has been occurring. With confidence affected by the financial turbulence and a decline in the terms of trade now under way, more cautious behaviour by both households and businesses is likely to see private demand remain subdued in the near term. With that outlook, and with capacity pressures now easing, it is likely that inflation in Australia will soon start to fall. Global disinflationary forces will assist in this regard, though the depreciation of the exchange rate means that the decline of inflation to the target could take longer than would otherwise have been the case.
Weighing up the international and domestic developments of recent months, the Board judged that a further significant reduction in the cash rate was warranted now, to take monetary policy to an expansionary setting. As a result of today’s decision, the cash rate will be at its previous cyclical low point. Given trends in money market yields, most lending rates should fall significantly and will also reach below-average levels.
There has now been a major easing in monetary policy over the past few months. Together with the spending measures announced by the Government, and a large fall in the Australian dollar exchange rate, significant policy stimulus will be supporting demand over the year ahead. The Board will continue to monitor developments and make adjustments as needed to promote sustainable growth consistent with achieving the 2–3 per cent inflation target over time.
Enquiries:
Dr Malcolm Edey
Assistant Governor (Economic)
Reserve Bank of Australia
SYDNEY
Dr Guy Debelle
Assistant Governor (Financial Markets)
Reserve Bank of Australia
SYDNEY
Phone: +61 2 9551 8800 Phone: +61 2 9551 8200
Manager, Media Office
Information Department
Reserve Bank of Australia
SYDNEY
Phone: +61 2 9551 9720
Fax: +61 2 9551 8033
E-mail: [email protected] "
No: 2008-27
Date: 2 December 2008
Embargo: For Immediate Release
STATEMENT BY GLENN STEVENS, GOVERNOR
MONETARY POLICY
At its meeting today, the Board decided to reduce the cash rate by a further 100 basis points, to 4.25 per cent, effective 3 December 2008.
Recent actions by governments and central banks to stabilise their respective financial systems have begun to take effect. Nonetheless, financial market sentiment remains fragile, as evidence accumulates of weak economic conditions in the major countries and a significant slowing in many emerging countries. Commodity prices have fallen further. This, combined with the likelihood of below-trend growth in the global economy, suggests that global inflation will moderate significantly in 2009.
The Australian economy has been more resilient than other advanced economies, but recent data nonetheless indicate that a significant moderation in demand and activity has been occurring. With confidence affected by the financial turbulence and a decline in the terms of trade now under way, more cautious behaviour by both households and businesses is likely to see private demand remain subdued in the near term. With that outlook, and with capacity pressures now easing, it is likely that inflation in Australia will soon start to fall. Global disinflationary forces will assist in this regard, though the depreciation of the exchange rate means that the decline of inflation to the target could take longer than would otherwise have been the case.
Weighing up the international and domestic developments of recent months, the Board judged that a further significant reduction in the cash rate was warranted now, to take monetary policy to an expansionary setting. As a result of today’s decision, the cash rate will be at its previous cyclical low point. Given trends in money market yields, most lending rates should fall significantly and will also reach below-average levels.
There has now been a major easing in monetary policy over the past few months. Together with the spending measures announced by the Government, and a large fall in the Australian dollar exchange rate, significant policy stimulus will be supporting demand over the year ahead. The Board will continue to monitor developments and make adjustments as needed to promote sustainable growth consistent with achieving the 2–3 per cent inflation target over time.
Enquiries:
Dr Malcolm Edey
Assistant Governor (Economic)
Reserve Bank of Australia
SYDNEY
Dr Guy Debelle
Assistant Governor (Financial Markets)
Reserve Bank of Australia
SYDNEY
Phone: +61 2 9551 8800 Phone: +61 2 9551 8200
Manager, Media Office
Information Department
Reserve Bank of Australia
SYDNEY
Phone: +61 2 9551 9720
Fax: +61 2 9551 8033
E-mail: [email protected] "
I don't mind at all that I was only 25pts too optimistic!
Another 50 pts in Feb will do just nicely thanks! Who's gonna start the poll for February?
Another 50 pts in Feb will do just nicely thanks! Who's gonna start the poll for February?
Na Na I beat you all to it!
What source were you watching/listening to Rixter? I'd like to know for next time.
And my rate with WBC following that 80bp cut is now 6.11%. Not much in it really...yay my interest rate with CBA is now 6.06%
Happy days!
Cheers,
Michael
Similar threads
