cut cut cut
rba cuts 0.25
- Thread starter Marty McDonald
- Start date
These cuts are just getting silly now - their negotiating power moving forward is just further eroded.
Payrise 
I like a rate cut on my mortgage as much as the next guy. I agree with Corey though, I don't think this was necessary.
Rates are already extremely low and this has fuels some fairly irrational buying/lending decisions in some sectors.
It's also not going to help the AUD (good for our exports, but my next overseas holiday is now on hold).
Again, the rates are so low that if a business is relying on this cut to survive, there's probably no helping them at this point. Things aren't great, but they're not that bad. If things get worse then this means less room to move.
Or course, this is only my tiny view of the economy.
Rates are already extremely low and this has fuels some fairly irrational buying/lending decisions in some sectors.
It's also not going to help the AUD (good for our exports, but my next overseas holiday is now on hold).
Again, the rates are so low that if a business is relying on this cut to survive, there's probably no helping them at this point. Things aren't great, but they're not that bad. If things get worse then this means less room to move.
Or course, this is only my tiny view of the economy.
Credit growth picked up to moderate rates in 2014, with stronger growth in lending to investors in housing assets. Dwelling prices have continued to rise strongly in Sydney, though trends have been more varied in a number of other cities over recent months. The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market.
Interesting point raised here - could be a combo of lending market tightening (APRA) and rate cuts.
Yep - given current market conditions where there's significant competition and room for discounting, a large chunk of it should be passed on.
i expect a further tightening of residential lending criteria now this cut is in play.
I'm in WA so I must admit I'm reasonably isolated from the impact of the economy on the likes of SA / Tas / Regional NSW & Qld but I personally think this cut could have waited another month or two.
This currency war 'race to the bottom' is not doing anyone any favours and will only seek to further feed the stagflation fire.
I'm in WA so I must admit I'm reasonably isolated from the impact of the economy on the likes of SA / Tas / Regional NSW & Qld but I personally think this cut could have waited another month or two.
This currency war 'race to the bottom' is not doing anyone any favours and will only seek to further feed the stagflation fire.
But there has been no change to the cash rate since August 2013!
How does this affect brokers' income, ceteris paribus?
There's probably going to be more people running to the property market, making hasty decisions, paying too much. Great for my bottom line but not so good for consumers.
Some people will take the opportunity to pay off their loans a little faster. This reduces the brokers trail income, but it's the best use of this cut that I can see for the average home owner.
Outside of that, no effect on a brokers income.
And I'd say there's been no need. If they're feeling the need to stimulate the economy (read: push more money into property) at this time, what happens when we do hit recession-town.
Its a double whammy for me.
Interest rate cuts and lower AUD.
Assuming of coarse that CBA aren't party poopers.
I think with the 'two speed' economy we have at present its not the right move. Like others have said it may see some 'irrational' buying of property - but until sentiment gets a shot of adrenalin, Australians wont be spending much more (at least - not in Australia).
Pete - If you were planning an OS holiday and a 20% increase in costs was going to impact it - why didn't you buy some USD when the rate was 90+? Its been fairly clear that the AUD was set to tumble for a long time now?
Blacky
Interest rate cuts and lower AUD.
Assuming of coarse that CBA aren't party poopers.
I think with the 'two speed' economy we have at present its not the right move. Like others have said it may see some 'irrational' buying of property - but until sentiment gets a shot of adrenalin, Australians wont be spending much more (at least - not in Australia).
Pete - If you were planning an OS holiday and a 20% increase in costs was going to impact it - why didn't you buy some USD when the rate was 90+? Its been fairly clear that the AUD was set to tumble for a long time now?
Blacky
