rba cuts 0.25

Considering the last rate cut was 18 months ago and economic conditions don't look flash, a 25bp cut is hardly alarmist.

Put in perspective, the RBA still has a full 9 more cuts available to them (based on a normal 25bp cut).

That's still heaps in the tank in comparison to therest of the worlds main economies.
If we hit zero, then the world is in the toilet .....period

True. :)

Its just the new norm, at least for the medium term. Cash rates at 6%+ won't be around for the medium term - unless there are some serious drivers of growth/prices that come from somewhere unexpected.

Also, central banks around the world have shown that you can continue to use monetary policy to stimulate the economy beyond the zero lower bound (UMP). The risks are greater sure, but can be used in emergency situations to stimulate activity/risk taking.

Cheers,
Redom
 
Correction - it's the ONLY lever.

Monetary policy is a temporary measure, a quick fix to allow breathing room for more permanent measures to take effect.

Unless the underlying economics are fixed through fiscal policy means, and Australia has been in a structural deficit since Howard years, then sometime in the future we are in for a whole heap of trouble.
 
0.25% cut- AMP

The interest rate change is effective:
- for new business on Friday 20 February 2015.
- for existing business on Monday 23 February 2015.
 
Interesting this more than 2 weeks (20 feb) before all these cuts become effective.

Quick to respond but not so when effective. Only a week and a bit until the next RBA cut might be announced.

Suspicious.
 
Interesting this more than 2 weeks (20 feb) before all these cuts become effective.

Quick to respond but not so when effective. Only a week and a bit until the next RBA cut might be announced.

Suspicious.

yarrr...

Most banks passing it on from the 20th...beside ANZ ( eff 12th)
 
Interesting this more than 2 weeks (20 feb) before all these cuts become effective.

Quick to respond but not so when effective. Only a week and a bit until the next RBA cut might be announced.

Suspicious.

In the ANZ's announcement, they did take a snipe at the other banks by saying they're passing the cut on 8 days before the rest.

It's been so long since rates have gone up, I've forgotten how quickly they apply increases, but I suspect it's the following Monday (less than a week).
 
0.25% cut- AMP

The interest rate change is effective:
- for new business on Friday 20 February 2015.
- for existing business on Monday 23 February 2015.
Thanks. I have been waiting for this.

Full details link from this page:

https://www.amp.com.au/wps/portal/a...toid=fab47c67649c2210VgnVCM10000083d20d0aRCRD

That's a croc (for me) because fixed rates didn't drop. I wanted to fix my only AMP loan for 12 months because my rate was 5.2%. So that will drop to 4.95%.

To fix for 12 months at 4.79%, I would save $704. Hardly worth it. If there is another cut of 0.25%, my variable would be lower than that. I might have to leave it as is.
 
Unless you think you are a timing lord then go ahead and fix, we will all marvel,at your skills.

Otherwise, over the many years we have invested, it all averages out.
 
Unless you think you are a timing lord then go ahead and fix, we will all marvel,at your skills.

Otherwise, over the many years we have invested, it all averages out.
Considering that 3 years ago, the loans for the same IP were at 8.14% and 8.64%, I'm very happy with 4.95%. I'll be even happier if it drops to 4.70%! :D
 
1-3 years fixed rate has dropped for some...lowest so far....hovering around the 4.50-4.59% mark ( 3 years)

4-5 years is around 4.54- 4.69% mark.

But yes fix rate takes a 1-2 weeks to follow through.
 
1-3 years fixed rate has dropped for some...lowest so far....hovering around the 4.50-4.59% mark ( 3 years)

4-5 years is around 4.54- 4.69% mark.

But yes fix rate takes a 1-2 weeks to follow through.


Saw your facebook post;


"4.29% FIXED for 3 years, major Australian bank !!!!!!! The Lowest 3 years fixed rate since 1959.

Great time to consider fixing some of your loans + Drawing out some equity ( for renovations/ deposit on next property etc...)

* Fixed rate is subject to change and is current as of today
* Your loan is subject to the lenders and credit approval
* Max LVR for this rate 90%."

Which bank is this?
 
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