RBA cuts rate to 0.75%

I don't know if this question has been asked yet, but normally when interest rates go down its designed to stimulate spending and borrowing. However right now with rates being historical lows and continuing to drop it can almost have the opposite effect, where one feels that the rates are dropping because of imminent economic downturn hence people may prefer to pay down debt or at least keep their money in their pockets. Any thoughts on this type on sentiment?

 

Passing on the full .25% it looks to me.

 

Rates have been dropping since 2008.

 

Rather than rates going down what I feel troublesome is RBA don't have much room to take in further down in case of a true recession( with out going in to negative rates )

My view is they should have waited after 1 or 2 rate cuts than rather doing it back to back to cut consumer confidence

 

Does cutting rates like this put more pressure on the government to stimulate through infrastructure?

 

government is hell bent on surplus, they will do nothing to put that in peril unless they can get revenue boost (mining always seems to come to their rescue or quickly flog of public assets) or cut costs in an area their voters don't care about (any welfare that isn't pensioners or farmers)

 

Yes that's what they did in 2008 GFC and may need to print more money to do so

 

Pretty sure Howard sold everything already

 

Westpac Fixed rates

 

ST G - Fixed Rates + Portfolio changes

 

3.23 is decent for IP P&I

 

No rate changes yesterday. Does anybody think it will change in December?

 

stock markets think so.

 

Latest retail sales figures were pretty bad, the one bright light was W.A that well and truly flew the flag , which also has the worst property market in the country.
All the other states were pretty well in a retail recession with wallets well and truly closed, and the tax cuts ineffective.
Maybe another rate cut is required? ?.

 

Bill is usually spot on with rate predictions and has been so over many years now. I respect his assessment at all times.
So, the money managers have to get creative eh....this'll be good to watch.

 

The market is now "UNSURE" if we'll get another cut.

ASX Cash Rate Futures 061119 by Waterboy posted 6th Nov, 2019 at 8:12 PM

 

Suspect the RBA would wait to see if recent cuts have any impact over the spendy Christmas period. Prevailing theory is likely that consumers are spooked/in a conservative mindset. Cuts from these already historic lows likely to have negligible impact on consumption from here on out so RBA hesitant to cut further. Our guru @petewargent is one of the most reliable sources of commentary on this (IMO) and might be able to shed some more light.

 

Historically I think they've stated (can't find the article) that a rate in October has meant a rate cut in December to follow I believe.

 

Given the negligible effect further cuts will have, along with signalling that things really are bad, and the fuel its just poured into inflating prices again I wouldn't be surprised if they just hold off until around Feb, and see what the next few months brings.