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Saturday, 10 January 2009

Today's monster rate cut just the beginning

2/12/2008 10:10:00 AM.  | John Barrington & Anil Lambert-Patel

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Homebuyers can expect further interest rate relief today, as the Reserve Bank meets in Sydney.

The RBA Board is expected to lower the official cash rate by as much as one per cent.

It will be the fourth consecutive cut in as many months, potentially taking the cash rate to 4.25 per cent from its current rate at 5.25 per cent.

The early Christmas present for home-buyers will also be a gift to businesses, struggling to manage costs through the global financial crisis.

NAB Chief Economist Alan Oster has told LIVENEWS.com.au homebuyers can expect rate relief well into the new year.

“We think 75 basis points, but to be brutally honest, I wouldn’t be surprised if they did a hundred,” he said.

“So, really, another big cut and - more importantly - you’ll probably get about the same in February next year.”

ANZ Chief Economist Saul Eslake says the confirmed recession in the US will weigh heavily in today's decision.

"This time around we've seen the New York market fall 5 per cent overnight," he told LIVENEWS.com.au.

"And coming after yesterday's news that prices fell in November, that could prompt the Reserve Bank to do more than expected."

COMMENTS

Tuesday, 02 December 2008

Bring it on!!!!!

Posted by: The Equalizer, Gold Coast

 

Tuesday, 02 December 2008

Just maybe it will help to get some of the thousands of homeless of the streets. This won't work immediately but if people can afford to build again and make the payments it will certainly make for more accommodations. Attacking the home owner and investor with excessive taxes and high interest rates caused the problem in the first place. Builders who left in droves may come back if the government and insurance companies ease up a bit. Anyhow it’s a start.

Posted by: Henry court, Sydney

Tuesday, 02 December 2008

I will admit, having lower mortgage payments is always a good thing but realistically, these cuts won't make a shred of difference in NSW as far as investors are concerned. The State government is raising those taxes you mention, so it still costs a fortune to invest in property. And frankly, we havn't really had double digit interest rates since the "high" interest rates since 1996!

Posted by: Concerned Liberal, Minto

 

Tuesday, 02 December 2008

I think that this is just a government beat up so that they can justify unlocking more funds to pork barrel for their mates. I want the cut, but I don't want the ALP to be spending my money on some of their insane projects. Desalinating instead of damming, Wind instead of nuclear, wilderness instead of farms, big business instead of small battlers.

Posted by: Happy Fun Ball, Carramar/Sydney

 

Tuesday, 02 December 2008

The root cause of the World's economic problems is the lack of Bank funding for business-will interest rate cuts help Banks to lend to business?. Are there any signs of improvement from previous cuts?.

Posted by: Desmond Harris, Beacon Hill

 

Tuesday, 02 December 2008

MYTH NO 1 : JOHN HOWARD said "Interest rates will always will always be lower under a Coalition Government than Labor" !!!! After today this Myth is officially BUSTED.BUSTED BUSTED BUSTED BUSTED,LIAR LIAR LIAR LIAR

Posted by: MYTH BUSTER, Labor Party Central

Tuesday, 02 December 2008

MYTH BUSTER-Simpletons tend to look at things in black and white. Interest rates must be looked at in relation to the state of the economy. If Rudd is going to take credit for the interest rate cuts then he must accept responsibility for the toxic state of our economy -which is the reason why we are getting these desperate cuts. It would have been a whole lot better if the interest rates remained where they were under the Coalition with a good economy and job security. The current situation is appalling.

Posted by: Desmond Harris, Beacon Hill

Tuesday, 02 December 2008

Don't let your Labor-coloured glasses get in the way of the fact that the whole country is going down the gurgler with the interest rate.

Posted by: Happy Little Gumnut, Sydney

Tuesday, 02 December 2008

LOL @ Myth #1: Well they were going up bigtime since Kev and his cronies got in, until the a meltdown in the world economy forced them down again. No downward movement was made or helped by this governement so far. All ive seen is a taking ' money from the workers and giving it to the non-workers of Australia ' approach to things. As well as upping the taxes on the so called working family. Jus as well Howard and Co had a nice fat surplus for Kev to spend and take credit for isnt it.

Posted by: Steve Franks, Sydney

 

Tuesday, 02 December 2008

Today’s interest rate cut should have been 0%. This interest rate cut will increase consumption and debt which is the reason why the western world economies got into trouble in the first place. This cut will increase the pain that we will experience in the long term. We should encourage production and savings by cutting the 30% company and 15% superannuation contribution taxes. Taking a hit on tax revenue is not to PM Rudd's liking despite it being in the best interests of Australia.

Posted by: Ken Beer, West Perth

 
 

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