What will it be this time. Shock and awe 125 basis points? or maybe 75 basis points. Can't see it being much less than that, unless they think people are going to get in the holiday spirit and spend spend spend!
Yep, i'm with you yieldmatters, i think 125 is definitely where we're at with this one. Although it seems kind of obvious and we know that the RBA likes to pull a rabbit out of the hat. If i was a betting man i'd be laying it on 150.
If its all going pear shaped at least those with debt will get something from it.
Those with low LVR will be laughing
I wonder now if LIBOR is so low, how the banks can afford to pay those high interest rates to depositors and how soon before rates drop on those deposits?
I voted 125.. but I am thinking it may be less now since inflation has dropped to 3% so they may not want to drop it too much to spark inflation again..?
I'm leaning towards 0.75% at best with the banks passing on 0.60%.
Once the RBA meet next year a larger one may well be on the cards.
For those retirees who have their funds in T/D's and the like it's going to be another kick in the guts. This group is getting larger with many pulling out of managed investments/stocks with the new gov't guarantee. It's going to be a juggling act for sure.
I appreciate the above doesn't relate to many forumites but the group mentioned above would certainly outweigh property investors. Most of these are inelligable for a pension and rely on interest to live on (p[lay the pokies).