Discussion in 'The Economy' started by Simon Hampel, 3rd Nov, 2008.
Lateline Business - 30/10/2008: RBA says dont set hopes on rate cuts
Lateline Business - 31-Oct-2008
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.
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).
I hope so too but not yet, I want to buy first...
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.
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