RBA Leaves Rates on Hold!

RBA just keeping plenty un their sleeves with the way things are starting to play out.

Might be a bit of "go hard, go fast" before the end of the year though.
 
They're probably shrugging their sholders, looking at each other and asking themselves, "If we drop rates, what good will it do. Better to keep something in reserve for when we really need it."
 
PT_Bear said:
They're probably shrugging their sholders, looking at each other and asking themselves, "If we drop rates, what good will it do. Better to keep something in reserve for when we really need it."
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Do me and alot of others alot of good thankyou very much...!;)
 
The Fence said:
Do me and alot of others alot of good thankyou very much...!;)
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Me too, I could use a few extra bucks every week, but let's face it, rates tend to move between about 6% to 8%. If you're struggling right now, you could be in real trouble in the future.

Low interest rates in the US haven't done them much good the last few years.
 
So if low interest rates have done no good in the US, then why is RBA "saving" for such times that may come to Aus ?

Im not struggling at all, just greedy. :D
 
Because in the US, no one can borrow money even if rates are so low because they simply won't qualify and/or banks won't lend it out.
 
aaron_c said:
because in the us, no one can borrow money even if rates are so low because they simply won't qualify and/or banks won't lend it out.
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.....and since student loans are fully enforceable even after bankruptcy, more and more banks now want to lend to students and less and less to small business.
 
PT_Bear said:
They're probably shrugging their sholders, looking at each other and asking themselves, "If we drop rates, what good will it do. Better to keep something in reserve for when we really need it."
Click to expand...

There doesn't seem much point in dropping a quarter of a percent. I suspect they're waiting for better data, and will either keep rates on hold, or make a more significant change based on what the data contains.
 
The Fence said:
So if low interest rates have done no good in the US, then why is RBA "saving" for such times that may come to Aus ?

Im not struggling at all, just greedy. :D
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Perhaps a series of 0.25% drops will have negligible effects on investors mind-sets, whereas a single 1% will be a better kick if the economy needs it. At this point I think rate cuts are as much about mind games as they are real savings.

Many lenders have floor limits on the rate they use to assess loans, regardless of how low rates actually are. For example, ING normally load's their assessment rate by 1.5% over their basic product, but the minimum assessment rate they use is 8.00% (otherwise it would currently be 7.72%). Further rate cuts with ING will not improve your borrowing capacity.

For many lenders, further rate cuts may improve peoples cashflow, but it won't let them borrow more from certain banks. The RBA has indicated in the past they're not intending to encourage further borrowing, this is just an observation on lender and consumer behaviour from my little office.
 
PT_Bear said:
Perhaps a series of 0.25% drops will have negligible effects on investors mind-sets, whereas a single 1% will be a better kick if the economy needs it. At this point I think rate cuts are as much about mind games as they are real savings.

Many lenders have floor limits on the rate they use to assess loans, regardless of how low rates actually are. For example, ING normally load's their assessment rate by 1.5% over their basic product, but the minimum assessment rate they use is 8.00% (otherwise it would currently be 7.72%). Further rate cuts with ING will not improve your borrowing capacity.

For many lenders, further rate cuts may improve peoples cashflow, but it won't let them borrow more from certain banks. The RBA has indicated in the past they're not intending to encourage further borrowing, this is just an observation on lender and consumer behaviour from my little office.
Click to expand...

And that's it in a nutshell, agreed fully.
Top post!
 
The Fence said:
So if low interest rates have done no good in the US, then why is RBA "saving" for such times that may come to Aus ?
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Most US borrowers are on fixed rates. Dropping the cash rate there doesn't help them much.

The RBA has adjusted rates every November for the past six years. Good chance they'll move again this November.
 
Shadow said:
Most US borrowers are on fixed rates. Dropping the cash rate there doesn't help them much.

The RBA has adjusted rates every November for the past six years. Good chance they'll move again this November.
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As I stated before.

pre-christmas :)

RBA are the givers ;)
 
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