RBA Cash Rate down from 0.75 to 0.5% (March 2020)


Another new record low. They blame the coronavirus.

The coronavirus has clouded the near-term outlook for the global economy and means that global growth in the first half of 2020 will be lower than earlier expected. Prior to the outbreak, there were signs that the slowdown in the global economy that started in 2018 was coming to an end. It is too early to tell how persistent the effects of the coronavirus will be and at what point the global economy will return to an improving path.

Once the banks pass this on, most saving accounts will probably drop below the inflation rate after taxes.

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  • +4

    Woohoo time to buy houses to boost the economy!

  • +3

    I'm going to put this link up as I found it pretty useful last time to know which banks are passing on what cuts:

    Might be time for those on mortgages to review, especially as some lenders have only been passing on 0.15-0.20 of the cuts of the last few cuts as well.

  • +12

    interest rate cut

    1.) every mortgage holder will store savings in bank
    2.) every saver will have less to spend and will thus spend less
    3.) house prices will inflate even more to the point of stupidty.

    inflation not stimulated will just stay the same
    economy will get worse.

    alternative (this is a rough idea and not perfect)

    **** the surplus, increase newstart, give low income earners $500 (< 30k a year), and give the rest some coin (income tested / staggered / cutoff) that they must spend on domestic travel, white goods, bulk clothes , education etc and if they cant provide receipts next tax year they must repay it back. rough idea, but current politicians are hopeless.

    • +1

      Agreed. "go hard, go early, go households"

    • +5

      Agreed. The RBA is now effectively impotent.

      • +1

        its ok you get used to it

      • Impotent, but is limited in the actions it can take.
        The government is responsible for policies.

    • +1

      the biggest winner from rate change (up or down) is the banks.

  • The Government dropped the ball on house prices and education.

    House prices were going up, the GOV said great, the Punters are happy. Not looking at the mess it will create for future generations.

    Universities and Private schools were raking in International students and not pressuring the GOV for more money, great another winner. Look at the shit show that has turned out to be,

    The common denominator for the BOOM and STUDENTS also gives us a bio weapon.

  • +2

    I'm going into debt up to my eyeballs because interest rates will never rise from here. Good times!

    • +1

      may as well go buy a 2 million dollar mansion some where the mortgage is like 1200 a week, get a few mates and you can live like pablo escobar

      • $2m does not equal 'mansion'

        • +1

          does where i live

          i moved from Sydney long time ago.

          • @Donaldhump: Ok
            Your profile shows 'Point piper' location; I assumed THE Point Piper

            • @GG57: he lives near the pied piper

            • @GG57: i own a house there, its small, but don't live there any more. i moved to gold coast cheap as in the hinterland

  • +1

    there is no better time in history to get a huge debt….

  • Pensioners and young people saving for house deposit take another blow

  • +1

    The RBA has dropped the ball for years.

    Interest rate cuts should be used for emergency stimulus not for the sake of political inaction to ensure that we have the world's longest economic run without a recession. Not to mention the Government is running contradictory fiscal policy so they can have their budget surplus.

    Should have bit the bullet years ago with a recession and keep our rates at around min 3% so that we can actually do have a buffer for emergencies like now. People are so highly indebted that they are most likely just going to use the money saved from mortgage interest to directly pay down debts or save up for the next investment property.

    Gotta love the Australian dream.

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