RBA drops rates by 100bp!

MichaelW said:
Hi Guys,

Here's the link to the full media release:

http://www.rba.gov.au/MediaReleases/2009/mr_09_01.html

Happy days!

Now lets wait and see how much the banks pass on...

Cheers,
Michael
Click to expand...

there was a lot of attention at this rate cut as the currency market was very volatile at the news.
after all the cut was less then market expected as the AU$ rised quite a bit. The funny thing is that a news like that in Australia pushed up quite a bit the euro against the US$ as well.
The AU$ jumped from 0.635 to 0.64 in less then 5 minutes
 
boz said:
there was a lot of attention at this rate cut as the currency market was very volatile at the news.
after all the cut was less then market expected as the AU$ rised quite a bit. The funny thing is that a news like that in Australia pushed up quite a bit the euro against the US$ as well.
The AU$ jumped from 0.635 to 0.64 in less then 5 minutes
Click to expand...

Boz, I saw the spike too, and read that the reason it went in the 'opposite' direction was that 100bps cut is seen as good for Aussie economy, hence confidence in AUD, whereas 50bps for example would be seen as not so good, causing AUD to drop. In any case could be right back to 63.5 soon enough.

p.s. I'm going to buy more at 61 cents and hope the RBA does too :)
 
A reserve bank that is out of touch with reality

The dummies at the reserve have yet again shown they must be sniffing ether in the rarefied atmosphere their heads reside in. The world economy is still in free fall with credit conditions continuing to contract but this same myopic board that six months ago was raising interest rates...... as Con the fruiter would say doesn't matta.

Watch our kleptomanic banking cartel pinch another .25%

With the reserve rate at 3.25% we are now 1.25% above where we should be to avoid a melt down in the residential property market. The rate it seems will not get down to 2% until after the carnage aided and abetted by our economic pygmies.

At the end of all this our federal and state governments debt will be back up over 6% of GDP and we will have these "experts" telling us that the mum and dads need to tighten their belts as the interest rates will need to be jacked up to fix a problem that was of their making:confused:
 
nonrecourse said:
The dummies at the reserve have yet again shown they must be sniffing ether in the rarefied atmosphere their heads reside in. The world economy is still in free fall with credit conditions continuing to contract but this same myopic board that six months ago was raising interest rates...... as Con the fruiter would say doesn't matta.

Watch our kleptomanic banking cartel pinch another .25%
Click to expand...

Westpac are passing it all on.
 
Shadow said:
Westpac are passing it all on.
Click to expand...

This time Westpac are, they didn't in November. This rate cut will simply even things out between the majors again.

I agree with nonrecourse. On the surface rate cuts are a great thing for our cashflow, but there's an ugly side to them.
 
ianvestor said:
Boz, I saw the spike too, and read that the reason it went in the 'opposite' direction was that 100bps cut is seen as good for Aussie economy, hence confidence in AUD, whereas 50bps for example would be seen as not so good, causing AUD to drop. In any case could be right back to 63.5 soon enough.

p.s. I'm going to buy more at 61 cents and hope the RBA does too :)
Click to expand...

yes, I think 100 bp was the right move from the RBA,
after last week 150 bp cut in NZ I thought more of 125 bp (and seems the market was expecting more then 100 too).
I am not trading much the AU$ lately, sometimes just smal target on the AUD/NZD.
I won't expect any cut on the 3 year plus fixed interest rates (unless government step in with heaps of taxpayer money).
 
The banks may lower their interest rate, but may not lend unless you have a 20
% deposit. The RBA actions are becoming less effective.
 
hpc08 said:
The banks may lower their interest rate, but may not lend unless you have a 20
% deposit. The RBA actions are becoming less effective.
Click to expand...

I don't see too much evidence of restricted lending just yet. Last FHB I had contact with was able to get 100% lend with $8K deposit (plus $14K FHOG) on a $400K property with nil problems.
 
Jacque said:
I don't see too much evidence of restricted lending just yet. Last FHB I had contact with was able to get 100% lend with $8K deposit (plus $14K FHOG) on a $400K property with nil problems.
Click to expand...

I have seen a lot of tightening in the past few months and based on my discussions with the banks, I think there's a lot more tightening to come. The banks have it all - fatter margins, less competition, government guarantees, more business than they can take and they are the only ones with money. It couldn't get better.

Soon, we'll be back in the 1970's - put on your Sunday best and go down to the bank and beg for money.
 
Heres one for you, amidst my celebration today a letter arrived from the NAB - one of those lovely 'We have decided to cancel your loc account so we would like our $175,000 back thanks very much and by the way you have 8 days left of the 14 days from the date of this letter to sort something out!'

Brilliant cheers and thanks for that just as things were looking up I can hardly believe that they choose to wait until now the very time when we are back on track!

Well I have put something together to show how we look going forward but I'm guessing that when you are cancelled you are cancelled!
 
Gee Sparky that is terrible.

I didn´t realise they were calling in LOC´S, has anyone else had this experience yet?

Did they give you a reason as to why they called in the loc?
 
They do an annual review and they decided not to renew it. I was so busy juggling balls this last year that I took my eye off that one and had some payments go through a few days late, however the account is completely up to date I didn't let it get away from me completely. I have found ING and ANZ were much more understanding and willing to work with us through this last year.

Would have been nice to have been give the heads up first eh?
 
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