RBA cash rate

[Dona Ferentes]

11 in a row too far

Australia's RBA Cash Rate Target Unchanged at 3.60%

"The Board expects that some further tightening of monetary policy may well be needed to ensure that inflation returns to target. The decision to hold interest rates steady this month provides the Board with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty. In assessing when and how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market..."

 

[wayneL]

11 in a row too far

Australia's RBA Cash Rate Target Unchanged at 3.60%

"The Board expects that some further tightening of monetary policy may well be needed to ensure that inflation returns to target. The decision to hold interest rates steady this month provides the Board with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty. In assessing when and how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market..."

Lowe trying to keep his job?

 

[farmerge]

11 in a row too far

Australia's RBA Cash Rate Target Unchanged at 3.60%

"The Board expects that some further tightening of monetary policy may well be needed to ensure that inflation returns to target. The decision to hold interest rates steady this month provides the Board with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty. In assessing when and how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market..."

Gives the debtors an extra month of breathing space.

 

[divs4ever]

i would normally say something negative , but am busy reducing the portfolio

and for me , money talks ( rally , baby rally )

we can always cry next month ( which is May )

 

[mullokintyre]

i would normally say something negative , but am busy reducing the portfolio

and for me , money talks ( rally , baby rally )

we can always cry next month ( which is May )

You are a month too early.
The saying is "sell in May and go away".
Mick

 

[divs4ever]

You are a month too early.
The saying is "sell in May and go away".
Mick

would rather be a month early than an hour late

besides a big expense coming very early in May

cheers

 

[Value Collector]

You are a month too early.
The saying is "sell in May and go away".
Mick

I say buy in May…. And June, July, August and every other month ?.

 

[divs4ever]

I say buy in May…. And June, July, August and every other month ?.

probably not stocks this May , have a different asset purchase in mind ,

depending on available cash , purchases ( of stocks ) might be rare this year for me

it might depend on which DRPs i opt out of

 

[frugal.rock]

At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.85 per cent. It also increased the rate paid on Exchange Settlement balances by 25 basis points to 3.75 per cent.

Statement by Philip Lowe, Governor: Monetary Policy Decision | Media Releases

At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.85 per cent. It also increased the rate paid on Exchange Settlement balances by 25 basis points to 3.75 per cent.

www.rba.gov.au

 

[Dona Ferentes]

wha' 'appen

 

[waterbottle]

Lmao, surprise hike by Phil Lowe. What a legend.

I especially love the bit where the market was predicting a 100% chance of no hike. Really goes to show that the market doesn't always price it in correctly....

 

[wayneL]

Lmao, surprise hike by Phil Lowe. What a legend.

I especially love the bit where the market was predicting a 100% chance of no hike. Really goes to show that the market doesn't always price it in correctly....

Tw@tter was about 60-70% for a 1/4% rise... So those of us sitting around at home, in our underwear, unabashedly scratching our balls, did better on average than professional economists (as per usual).

This doesn't surprise me. It ain't called the "dismal science" for nothing.

 

[wayneL]

It is actually amusing to witness the weeping and gnashing of teeth over a rise to 3.85%... still more than 3% less than the *fraudulent CPI rate.

Folks, we are still in significantly negative real rates. We should be castigating the reserve bank over this,
rather than the totally insipid "tightening" thus far.

 

[macca]

It is actually amusing to witness the weeping and gnashing of teeth over a rise to 3.85%... still more than 3% less than the *fraudulent CPI rate.

Folks, we are still in significantly negative real rates. We should be castigating the reserve bank over this,
rather than the totally insipid "tightening" thus far.

I will have to disagree with you Wayne, the people who live in the bubble in Canberra, have NFI what is happening here in NSW.

RBA created the real estate price bubble by making very unprofessional comments which were tantamount to saying buy now while you can.

Prices around here went up 50% in two years, many bought because the so called experts said no increases for 2 years, FOMO was the driver for the frenzy.

Now, not only do we have interest rates 30 times higher, we also have most household expenses up by about 20% on many things.

These price increases were Not driven by demand, the manufacturers and importers took the opportunity to jack the price up on anything and everything because of the Media pump about Inflation.

Obviously self perpetuating, as soon as Inflation gets a mention all wholesalers jump in and increase prices, I know, I used to be one

Working families are in big trouble over here and while it may take a quarter for the numbers to show, retail and services are about to go over a cliff.

We have a rock solid shopping centre nearby that has more vacancies in the past 2 months than in the past two years so figures are turning way down.

Given the RBA track record over the past few years I don't hold much hope of Australia not going into recession

They seem incapable of forming an opinion based on events here rather than OS, they don't seem to be aware that most USA Housing Loans are long term fixed interest. Naturally that means interest rate adjustments have to be a lot more severe before they effect the workers.

Because most of us in OZ are on flexible interest rates, a much smaller increase has a much bigger effect on household budgets.

All very logical but far too complicated for the current RBA members to understand, unfortunately

 

[Dona Ferentes]

just fyi, RBA is based in Martin Place,

 

[divs4ever]

It is actually amusing to witness the weeping and gnashing of teeth over a rise to 3.85%... still more than 3% less than the *fraudulent CPI rate.

Folks, we are still in significantly negative real rates. We should be castigating the reserve bank over this,
rather than the totally insipid "tightening" thus far.

indeed it is a symptom of over-indebtedness across the economy

i hope to novices are watching this , this could be the lesson of a generation

 

[divs4ever]

just fyi, RBA is based in Martin Place,

YEP ! i have been there

 

[wayneL]

I will have to disagree with you Wayne, the people who live in the bubble in Canberra, have NFI what is happening here in NSW.

RBA created the real estate price bubble by making very unprofessional comments which were tantamount to saying buy now while you can.

Prices around here went up 50% in two years, many bought because the so called experts said no increases for 2 years, FOMO was the driver for the frenzy.

Now, not only do we have interest rates 30 times higher, we also have most household expenses up by about 20% on many things.

These price increases were Not driven by demand, the manufacturers and importers took the opportunity to jack the price up on anything and everything because of the Media pump about Inflation.

Obviously self perpetuating, as soon as Inflation gets a mention all wholesalers jump in and increase prices, I know, I used to be one

Working families are in big trouble over here and while it may take a quarter for the numbers to show, retail and services are about to go over a cliff.

We have a rock solid shopping centre nearby that has more vacancies in the past 2 months than in the past two years so figures are turning way down.

Given the RBA track record over the past few years I don't hold much hope of Australia not going into recession

They seem incapable of forming an opinion based on events here rather than OS, they don't seem to be aware that most USA Housing Loans are long term fixed interest. Naturally that means interest rate adjustments have to be a lot more severe before they effect the workers.

Because most of us in OZ are on flexible interest rates, a much smaller increase has a much bigger effect on household budgets.

All very logical but far too complicated for the current RBA members to understand, unfortunately

I do have sympathy with your point of view. But none of that changes what is economics 101.

Many on this very forum, including myself, warned of the possibility of steeply rising rates...

Notwithstanding hanging around the house in our pyjamas and scratching our balls.

And let us not forget how those on the opposing scale (savers) have, and still are, being screwed.

 

[divs4ever]

I do have sympathy with your point of view. But none of that changes what is economics 101.

Many on this very forum, including myself, warned of the possibility of steeply rising rates...

Notwithstanding hanging around the house in our pyjamas and scratching our balls.

And let us not forget how those on the opposing scale (savers) have, and still are, being screwed.

YEP ! worked out it was TINA ( there is no alternative ) to the stock market in 2016 (ish ) and when September 2019 hit loaded up with the ' BEAR ( family ) ' of ETFs and liquidated them in March 2020 ( rather than having cash stockpiled in the banks ) ( and adding to the div. payers during the rest of 2020 )

what folks should be cautious about is the re-writing of 'economics ' ( and the definitions and data-collecting efforts )

as some pundits declared a couple of years back ' we are in uncharted territory ' , which may be a very bad thing ( but not completely devoid of silver linings and opportunities )

... but what is 'safe ' in the next 5 years that should be a tester , for investors/savers

 

[macca]

just fyi, RBA is based in Martin Place,

Any time I have seen him speaking on TV it has been from Canberra so I have incorrectly assumed they were there