Lowest for ~2 years.
The RBA's official cash rate was last below 4 per cent in May 2023, before it was raised to 4.1 per cent at the June 2023 meeting.
Yay for borrowers, nay for savers.
RBA Cuts Cash Rate by 0.25% (from 4.1% to 3.85%)
scalebearer on 20/05/2025 - 15:05
Last edited 21/05/2025 - 19:35 by 1 other user
Last edited 21/05/2025 - 19:35 by 1 other user
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you are in a pool of Ozcommunists!
Bullock peeing over a dead economy. Hope the seeds will sprout.
4% unemployment. Buddy you aint seen a bad economy if you think this is bad
Bearish Signal
Government: "Everything's fine! See now you can borrow and spend more!"
dang it has been 2 years since we are above 4%??
Another breaking story. OzNationalNews brought to you by op.
Albo-Chalmer have started very fast. Domino effect!
Just take the advice of a former liberal party treasurer and get a good job. Then sit back and enjoy a coffee with your back in the black mug.
Yes! My favourite line from cigar smoking Joe Hockey, the worst Treasurer the nation has ever seen!
If they can't afford the rent, there's always someone else who can.
Some of them can't afford to eat too… Unlike Albo, show some empathy…
https://www.9news.com.au/national/australians-skipping-meals…
@jv: Well shit can't spend all our time giving training wheels to the poorest.
Some of us pay taxes and are worth making policies for.
can't spend all our time giving training wheels to the poorest.
Many of these people were getting by before until food and power bills went up about 30% over the last 3 years of government…
Many of these people were getting by before until food and power bills went up about 30% over the last 3 years of government…
You really need to be more honest. It has been a good 7 or 8 years of dreadful governments on both sides that created this.
@gromit: More honest: Inflation has been highest over the last 3 years though. Food up 30%, utilities up 30%, rents up even more…
@jv: Absolutely, but that is not all on labor, the skyrocketting inflation and interest of their first year was all on the coalition.
the skyrocketting inflation and interest of their first year was all on the coalition.
It skyrocketted in the 2nd year when food, utilities and rents started to go up.
It skyrocketted in the 2nd year when food, utilities and rents started to go up.
That is some pretty selective memory you have their.
https://www.rateinflation.com/inflation-rate/australia-histo…@gromit: Not really, there was a 40% increase in inflation in Albo's 2nd year…
That is some pretty selective memory you have there.
https://www.rateinflation.com/inflation-rate/australia-histo…
Tell that to the renters
Like Amelia Hamer.
Yes she rents…
Some can afford it, but many can't…
@jv: With a trust fund and a handful of investment properties I don't know how she gets by. I mean, she is also unemployed now too.
With a trust fund and a handful of investment properties
She doesn't have a trust fund and she has two investment properties outside of Victoria and she rents here.
She's never claimed to be struggling, that was just the Teals making stuff up as usual…@Baysew: It's not her's though, don't believe everything you read…
Even the first paragraph is the story is totally false…
@jv: When people say someone has a "trust fund" it usually means they are just the beneficiary of one.
"Trust fund" kids didn't set their own up to benefit from at a later date, it is usually the family trust fund.
When people say someone has a "trust fund"
She never said she has a trust fund though.
If so, show me where?The article, and the comment above are totally false and misleading…
Similar to the articles that claim Amelia said she was a 'struggling' renter.
She never said that and the claims a baseless and made up by the Teals.
The Teals were instructed to say that, in the same way they were instructed to always use the term "Dr" when talking about Monique.
It's all smoke and mirrors to build Simon's empire.
@jv: @jv
She doesn't have a trust fund
pointless semantics. if you mean by having a trust fund means you have to have legal control that excludes most heir/heiresses. The point is she is a beneficiary of a family fortune, comes from a well off family and has never, and will never worry about making ends meet. that is what most people understand as 'trust fund baby'
pointless semantics
No, just facts…
he point is she is a beneficiary of a family fortune
One of 12, so her portion would be worth just over a million… Not even half what she would need to buy a house in Hawthorn…
Hardly a 'fortune'…..
Certainly not even enough to pay for a quarter of Albo's house…
@jv: that's a very rudimentary and wrong understanding of what a family trust is - it's for generational wealth where it's passed on between family members to minimise tax implications and estate protection - what will likely happen is she, along with her siblings will assume legal control as the elder members of the families pass away but let's go with your version, so, only over a million that she's never had to work for
how many millions have you got jv?
comes from a well off family
Just like Monique Ryan to lived and went to school in Toorak and was earning about half a million per year in her previous job.
@jv: I'm not involved and don't care about the politics of that seat, and don't care about how many dollars and cents the other candidates they have to their name - I'm just pointing out the fallacies of your spirited defense - but you have made your political leanings very clear
I'm just pointing out the fallacies of your spirited defense
No, you're just buying into Simon's fake propoganda…
So what you're saying is that grubby landlords are charging too much for rent.
If you can't afford rent you won't have over 3 mil in super lol
I never said they did. lol
Albo-Chalmer have no inflluence over the overnight cash rate target set by the RBA.
No direct influence, but they can definitely influence it.
E.g.
Let's say that instead of saving most of the money and spending modestly during the post COVID inflation spike, they decide to try and "outspend" the inflation by handing out a lot more money.
This would fuel inflation and drag out the long tail, forcing the RBA to keep interest rates higher for longer.
Likewise, if they didn't handout any energy rebates at all, then the inflation tail may have been shorter, but it would have meant a much steeper economic downturn, making a soft landing harder to pull off.
Sure they can indirectly influence the interest rates by not being even worse than they actually are. But that could be said for absolutely any PM-Treasurer combo that we've ever had or ever will have.
It's like a big oil company claiming carbon credits while not reducing oil production on the justification that they could have increased production even more so therefore they should get credits for not making things even worse. …Oh wait, that is what happens though. Uh oh.
Like they have the inflation rate under control…
🤣
maybe, if you don't shop for food or pay for utilities….
Great news, this will save me about 3 cents a year off my mortgage.
You're one of the lucky ones then…
Not really. While I'm saving 3 cents on my mortgage, I'm loosing hundreds on my savings account.
Why not put your savings into your mortgage?
If I overpay the mortgage will they pay me interest at the mortgage rate?
Even better, you'll save on mortgage interest at a pre-tax rate that works out much better than having you money in another savings account.
You just need to make sure you have an offset account.@jv: You've misunderstood the question. If I put my savings onto the mortgage the bank would owe me money. Will they pay me interest at the mortgage rate? Someone must have tried it before.
If I put my savings onto the mortgage the bank would owe me money.
No, it would reduce your mortgage so you will pay less interest on it.
Paying the lesser interest works out better than having the same amount of money in a separate savings account.
First of all, it is likely your mortgage rate is higher than the savings rate.
Secondly, you pay tax on savings interest, but not for mortgage savings, so that 'tax' has gone into reducing your home loan…This only works if you have an offset account with your mortgage.
@JIMB0: Same effect.
If you've got a mortgage at 5% and you put money into a redraw or offset, you're effectively earning 5% interest (which doesn't get taxed).
If you leave money in a bank account getting paid 5%, you're earning interest which does get taxed.It's extremely rare that you're ever better off leaving money in a bank account vs leaving it in a redraw or offset. Assuming you aren't considering shares or something like that.
@ferry594: if you put into mortgage, it becomes the bank's money (early repayment) hence why sometimes they charge or limit the redraw you can make per year.
if you put into an offset account, it is still your money and can be easily taken out at any time.
both options will save interest
@meong: If the bank goes broke, you've lost anything above 250k with an offset.
If the bank goes broke, you only owe what's left on the loan if you do a redraw@ferry594: If you only care more about how much left you owe in the mortgage then just put in the redraw.
Offset is only if you prefer the liquidity of the cash while still saving interest and having 250k more guaranteed than keeping the cash under your pillow.
"I'm loosing hundreds "
there's a hole in your bucket, dear Jimbo dear Jimbo
.Having your house paid off doesn't make you a lucky one?
Your mortgage has a balance of $12? That does sound like great new for you.
Yes, it's great. Now the thing I want to know is can I make it a negative balance and have them pay me 6% interest?
What did your bank say?
@tenpercent: They said to ask on OzBargain.
JK. They actually thought it was a brilliant idea and offered me a job as Vice President of Fiscal Fantasies.
$96 a week for me
Expecting banks to pass the rate cut to home loan in the next few days
All big 4 passed on quite quickly. Just waiting for Bendigo now….
They sure could pass it to savings accounts instantly though…
Just got the email this morning - full cut passed on (Virgin - Macquarie)
It ain’t much… but it does help a tiny bit
Are you still regurgitating quotes from Mrs Wongingtons?
You must have a tiny mortgage.
I understand this euphemism.
Yeah doesn't help my cash flow at all. But nice that there is less interest being added to my mortgage every month
The RBA has also become more upbeat about the prospect of Australia addressing its apparent housing shortfall, considerably upgrading its forecasts for dwelling investment…by next year the RBA expects the effects of falling interest rates and government policies to boost housing supply to be taking effect…[The RBA notes] house prices have "yet to materially respond to easier borrowing conditions".
So it seems though the RBA won't make materials and labor cheaper for new builds, it feels it can make them effectively cheaper by lowering the interest rate you take out to build the property. Call me a skeptic, but I'm not so sure.
I'm just not sure Australians want a few million more apartments or houses on the urban fringe. As for that government policy, what's to stop it wasting it on initiatives that don't build any houses or just completely missing its targets?
If you have a moment for a quick reel, this one by Chris Kohler kind of explains the problems with "just build more
housesapartments."I'm just not sure Australians want …
They don't. But that's not a problem with immigration flood gates set to wide open.
Just what house prices need to reach even more absurd levels: greater borrowing capacity for the entire nation. Oh wait, Labor is also throwing another few $ billion into the property market with the 5% deposit scheme. Why not spend the entire budget pushing up house prices?
Exactly - people get excited over saving a few bucks whilst house prices go up a few hundred thousand because 'low-rates and all'
Well people who have already 'locked in' their house price don't care if it becomes more expensive for others who haven't bought yet to buy.
I think you'll find, some of us do, as we all have kids who will never be able to afford a house. I'd happily have my house halve in value if it meant my kids stood a chance of being able to buy a home to raise a family. The value of our housing has gotten absurd.
Having so much 'wealth' tied up in a PPOR doesn't really make one wealthy at all.@gmozz: that's why you sell your ppor and downsize, and gift it to your kids for their deposit, pushing up house prices further in the process
/s
Economy a stronk.
cutting rates is a sign of a slowing economy but it is good we seem to have inflation under control
this probably will pump housing which is something Australia doesnt need more of
Pump housing prices, not supply which is needed.
not supply which is needed
Along with a much needed drop in demand growth.
This is not exactly good and the markets aren't spiking up like they did last time.
Wasn't there an economic theory that generally points to having more ammo for the future being better, or are we all in on QE in Australia for the next round.
We will need it with the possibility of war coming soon.
17% rise in the ASX from the Trump low over the past 50 days not enough?
Fredfloresjr on 20/05/2025 - 15:13 Comment score below threshold.
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