RBA rate cut down to 0.5%

Discussion in 'Markets & Economies' started by slavaja, Mar 3, 2020.

  1. slavaja

    slavaja Well-Known Member Silver Stacker

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  2. leo25

    leo25 Well-Known Member Silver Stacker

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    one more 25point cut to go before they start QE (officially).
     
    mmm....shiney! likes this.
  3. slavaja

    slavaja Well-Known Member Silver Stacker

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    QEQEQEQEQEQEQE
     
  4. madaw1

    madaw1 Well-Known Member

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    gold steady?!
     
  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Give the analysts time to digest this and report to their clients.
     
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  6. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    I didn’t know Australia’s rates are so low. It’s a total mismatch for a robust economy that is having surpluses. Singapore’s 1 year is near 2% but I’m already pulling money out of FDs.
     
  7. leo25

    leo25 Well-Known Member Silver Stacker

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    Robust economy? hardly. Our economy mainly consist of flipping houses and digging holes in the ground.


    -By lowering rates(increasing money supply) you lower the AUD, a lower AUD boost exports and foreigners buying land, boost in exports/sales gives government more tax revenue. Seems great until you realise everything you buy comes from overseas and now cost 2x the price.

    -If the central bank stops lowering rates (reduces money supply) you increase the AUD, a higher AUD reduces exports and foreigners buying land, reduction in exports/sales gives government less tax revenue.

    -This will cause government to run big deficits, which then forces the central bank to lower rates (increase money supply) Now you have a circular loop.
     
    Last edited: Mar 3, 2020
  8. Tokyo

    Tokyo Active Member

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    I am expecting rare cut in Canada USA also and Europe Japan Probably follows. new all time high in stock market as money pumps into market ( short term)
     
  9. precious roar

    precious roar Active Member

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    Lowering the interest rate has worked so well, thus far, it's no surprise they keep doing it.
     
  10. Tokyo

    Tokyo Active Member

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    M
    but how far ? Running out of room for cuts worldwide, who live in Australia definitely not enjoying currency devaluation.
     
  11. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    0.25%
     
  12. bubblebobble2

    bubblebobble2 Well-Known Member Silver Stacker

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    HOUSING BOOM!!!
     
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  13. Tokyo

    Tokyo Active Member

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    It would continue until music stops
     
  14. STKR

    STKR Well-Known Member Silver Stacker

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    Has it really? Or has it just over-inflated asset prices? The question is... Where do we go from here? What tools are available when we officially enter into a recession?

    Historically, Australia (and central banks around the globe) has reduced the cash rate by 6-8 points to help kick-start the economy back to growth, but we only have .50 basis points to go before we go negative.

    Hell, some of you may remember very well that we had a cash rate of 19% in the 90's.
    I even remember as a kid thinking to myself "I only need to make $1 Million and then I can live off the interest for the rest of my days."

    I really feel for the Boomer's. Many have worked their arses off their whole lives, dreaming of a happy and prosperous retirement, yet that won't be the case for many. Even if they've been the main ones to benefit from these over-inflated markets, they're still the mothers, father's and grandparents of the generations below them.
     
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  15. slavaja

    slavaja Well-Known Member Silver Stacker

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    Like I said before if it hits 50c fuel price could jump to nearly $2.
     
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  16. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I disagree, Lowe has made it clear that 0.25% is the effective ZLB.

    At that point the music will really begin. The helicopters are fuelled , they’re just waiting for the band to start.
     
  17. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Wrong thread mate. Should be in JOTD.
     
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  18. STKR

    STKR Well-Known Member Silver Stacker

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    Should I just quote your username and call it a Day?
     
  19. madaw1

    madaw1 Well-Known Member

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    minus 0.5% why not?!
     
  20. madaw1

    madaw1 Well-Known Member

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    Is the Lowe fortuneteller?-We have heard the same news when interest was 3%-long time ago....
     

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