RBA to cut another 1%?

Anecdotally we are starting to see some of the larger macro funds get positioned for a turn in Aussie rates/FX. Perhaps the market is already priced and the RBA is chasing a ghost?? I'm not smart enough to know, but maybe unloadmymind could weigh in....
turn in Aussie FX, as in rise again?
 
Anecdotally we are starting to see some of the larger macro funds get positioned for a turn in Aussie rates/FX. Perhaps the market is already priced and the RBA is chasing a ghost?? I'm not smart enough to know, but maybe unloadmymind could weigh in....
I don't understand the question. Turn in Aussie to what? Markey already pricing what?
 
or does it just seem like that because our market has defied logic for so long?
I am starting to wonder if the words "logic" and "australian property market" even relate at all anymore. Globalised movement of money makes local logic irrelevant in some cases.

Look at Glen Waverley as one of many examples
 
Drive, determination and an I can beat the world attitude are good traits to have when they are balanced with a humility and understanding that being in a fortunate position financially when you have started from "nothing" in life is both due to skill and good (sometimes lucky) timing.

I guess that comes with experiencing both the good and the bad that life can throw at you through the years.

Anyone who is making good coin in a JOB at a young age can lose sight of the reality that it can be taken away in an instant at the whim of an employer.

Don't lose sight of this younglings, and be appreciative that others who are older, who may not have been on the big coin, still have valid views that are relevant.
yes, this is very true.
I used to have the first part, but not the second part....
many tough lessons later, I now have the second part, whilst still maintaining the first part.
 
Now that the Goverment has introduced a stimulus package to help small business I cannot see the need for further rates cuts. There will be a period of 6 to 12 months to see the effectiveness of the initiative before any decision of interest rate adjustments.

We are not in a recession so there is no need to overstimulate the economy.
 
We are not in a recession
Thanks to our Smoke And Mirrors GDP. Hockey was quick to grab the headline growth rate (which is nevertheless well below the 3% needed to reverse a deterioration in unemployment i.e. growth is not enough to create jobs to absorb the growing working age population). Remember one of the primary responsibilities of the RBA under the law is to promote full employment

But if you analyze the National Accounts closely, it's a disappointing result from the RBA's perspective.

The GDP growth is mainly the result of increased export volumes of iron ore and coal. We all know what happened to iron ore and coal prices. The increase in volume is not enough to offset the collapse of the terms of trade.

Our Gross National Income (based on actual income as opposed to production which GDP is all about) is barely moving. Household consumption is disappointing, contrary to what the RBA is hoping for, and people are raiding their savings (savings rate is down). And there's the business investment cliff we are going to experience once the mining investments are truly over and there is nothing much to fill the void.

The Devil is in the Detail. Look through the attention grabbing headlines.
 
....
We are not in a recession so there is no need to overstimulate the economy.
True, we are not in a recession.
However, there is a need to stimulate the economy as seen by trade data released recently...ie expenditure is growing at a faster rate than intakes. This is just one example and a generally expected trend.

In the past, we have relied on pulling ***** outta the ground and pimping it off to overseas markets as main revenue drivers. Given that the demand for these commodities has reduced, and supply is kept constant, or even increased in some cases, the price has tumbled. The govt. now needs to develop non mining sources of income much more for export.
One way to encourage this is for businesses to commence projects and ventures that target this. By cutting rates, it encourages businesses to do so as borrowing costs from the bank should become cheaper.
 
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