Rate cut next month?

They’ll keep rates on hold in my opinion, we could possibly see a rate cut next month but no change for now

 

I don’t think over 70% of economists will get it wrong and we can expect another cut today.

This time though I don’t think any bank will pass it on in full. I reckon most will sit around the .20.

 

https://www.rba.gov.au/statistics/cash-rate/

Cash rate at 1% after the cut today

 

Rate cut to 1%. Lets wait and see what the banks do.

 

I wander what this is doing to demand.

RBA taking such big actions they are really hoping for a huge boost.

APRA the ball is now in your court to also lift some limitations.

 

And what about banks/lenders? Have they start to go easier with assessment rate?

 

They cant until APRA says they can.

 

Looks like I was wrong straight up!
I knew a cut was inevitable but didn’t see ANZ of all lenders coming out the gate passing on in full.

 

Not yet, nothing has been finalized at the ASIC level but should start to see changes to assessment rates in the next couple of weeks.

Cheers,
David

 

The RBA should have cut months ago!
Yet they waited for the election before cutting rates.
There's no reason to delay!

 

So what's everyone's opinion of what this cut will do for the economy?

 

it bring out the animal spirit and add more fuel to asset price, M&A, PE will comes out gun blazing and drive crazy activities on the stock market and we party on until the music stop

 

The same as all the others , not much, you cant run and hide from the data, and debt is the big killer which is causing all the problems .
Some are hoping that Phillip Lowe will come through on his white horse and miraculously save the economy from itself but without actually dealing with the issue that is causing all the problems, which is high debt and the flow on effects in the economy as households stop spending .
Unless workers are prepared to demand payrises or move on to another job, there is not going to be any big changes in wage growth, especially with the casualization of many jobs and all the low paying jobs in the gig economy.

 

Let see what 2019 brings with even cheaper debt

 

My conspiracy theory goes like this ....

Rate cut mostly based on concern around unemployment & wage growth and if I were running
some BIG biz like one of the FANGS, I will pull my weight doing so cutting full time permanent
jobs like crazy and then replace them with contractors. What I have achieved are:

1. Less dead weight on the book coupled with innovative accounting make my biz looking
profitable ever!
2. With the ever improving profitability, I can then go to the banks to borrow $$$ like crazy for
"expanding" the biz operations, R&D, M&A, u name it. And hopefully i can do it at ridiculously
attractive rates!!!
3. Repeat the above.

Over time, less and less permanent full time jobs are created and no concept of wage growth
along that line. RBA is forced to not able to raise rate, and more likely the opposite. That plays
right into the hands of the big big biz, one like what I run LOL!!!

 

Few of us saw this coming of-course.

But the interesting part is - Financial markets are now pricing in a 76 per cent chance of another rate cut by November - the Reserve Bank’s third cut this cycle.

Cheers,

 

If anything, it will prevent the AUD from appreciating, in the face of market's expectations that the U.S. Fed will cut rates this year.

The RBA obviously doesn't want the AUD to appreciate.

It's more like a race to the bottom.

 

Wow, how low will we go

 

Uncharted waters.

Super scary if any lower it goes.