Join our investing community

RBA says don't set hopes on rate cuts

Discussion in 'The Economy' started by Simon Hampel, 3rd Nov, 2008.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,773
    Location:
    Sydney, Australia
    Last edited: 17th Sep, 2016
    Simon Hampel, 3rd Nov, 2008
    #1
  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,811
    Location:
    Sydney, NSW
    IMO 0.5% or more would be appropriate.

    Why do they have to be stingy with the cuts anyway?

    The economy is not going to take off in a hurry.
    The markets are very quiet atm so they need all the help they can get.

    Once the fear is gone and things start to improve they can start raising rates again.
     
    Billv, 3rd Nov, 2008
    #2
  3. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi BV,

    I guess it's a fine balancing act to stimulate the economy through these times. They don't want to hack away at the RBA rate too fast otherwise the economy will take off in a hurry (and we'll see the AUD drop further!)

    At the moment most people are in fear, hopefully some greed will return to investments (shares and property).

    Cheers,

    Dan
     
    AsxBroker, 3rd Nov, 2008
    #3
  4. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,811
    Location:
    Sydney, NSW
    I hope so too but not yet, I want to buy first...:D
     
    Billv, 3rd Nov, 2008
    #4
  5. Chris C

    Chris C Well-Known Member

    Joined:
    2nd Apr, 2008
    Posts:
    1,327
    Location:
    Brisbane, QLD
    With the inflation rate at 5% and the AUD losing 30 - 40% in only a couple of months would make the RBA not want to cut rates anymore than they felt was necessary.
     
    Chris C, 3rd Nov, 2008
    #5