http://www.afr.com/home/viewer.aspx?ATL ... te+on+hold
Oh well, always next month
Browse Forums General Discussion 1 Mar 03, 2009 1:47 pm Stevep79 & Principessa Finished building Wisdom Homes Impression 33mkII in The Ponds, Sydney http://lilypadintheponds.blogspot.com Re: Interest Rates on Hold - March 3rd 2Mar 05, 2009 3:07 am I don't know steve, after the two big banks said they are not keen to pass on the rate cuts, Reserve Bank might be thinking what's the point. What do you think? Re: Interest Rates on Hold - March 3rd 3Mar 05, 2009 7:24 am thlo I don't know steve, after the two big banks said they are not keen to pass on the rate cuts, Reserve Bank might be thinking what's the point. What do you think? Seeing as though the rate cuts have absolutely nothing to do with what big banks say they will do, I still say that they'll have to cut the rates at least once more, even if it's only by 25bp. I know that the rates have a possible flow on effect through building approvals but there are bigger fish to fry than the housing market. A rate cut has more impact when it comes to big business. It's a given that rate cuts have an immediate impact on commercial lending, especially in $200m+ banking facilities. My company alone has an interest bill of over $15m a year from bank loans so any reduction in official rates has a significant impact on the bottom line and also makes way for improved business confidence in these trying times, leading to capital expenditure. People who were putting their money aside in high interest bearing bank accounts are now wondering what to do with their cash, especially since the share market is quite low right now. Another rate cut could be the thing that forces them to finally do something with that money seeing as though it's not getting much benefit from the bank accounts. This could lead to greater investment as people look to buy low in the share market. I guess there's always the most logical issue, the economy could just get worse. If their indicators all say "reduce rates" they'll reduce rates. Stevep79 & Principessa Finished building Wisdom Homes Impression 33mkII in The Ponds, Sydney http://lilypadintheponds.blogspot.com Re: Interest Rates on Hold - March 3rd 4Mar 05, 2009 10:47 am Well thought answer. Seeing that TDL quoted my post in this thread to the Home Finance thread, I'll continue there. yes it does, you've just not understood it. theres a difference. 4 5322 |