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RBA shocks in rate announcement

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Australian Broker | 07 May 2013, 06:00 AM Agree 0
The RBA has surprised today in its rate announcement
  • Blake | 07 May 2013, 02:56 PM Agree 0
    I just won a case of beer
  • Melb broker | 07 May 2013, 02:57 PM Agree 0
    Not really a shock. Probably overdue in my opinion
  • Ian Graham | 07 May 2013, 03:18 PM Agree 0
    Once again the RBA has shown just how out of touch most economists are.

    Any semi intelligent being who has got out of his/her ivory tower and talked to small business people, mortgage brokers and builders would have had no trouble correctly predicting this drop in rates.

    The good news is it will lead to cheaper mortgage rates but I suspect the stimulus intended may not be as good as expected, my measuring of feeling out on the street is that once again mortgage holders will choose to increase repayments rather than spend.

    This rate fall is really very sad, it just goes to show the parlous state of the economy.
  • Gary | 07 May 2013, 03:33 PM Agree 0
    Blake don't forget to declare the case of beer to the ATO, they will want their share.
  • nedi | 07 May 2013, 03:34 PM Agree 0
    I'm surprised this is descirbed as a "shock announcement", almost every industry is experiencing contraction or lerthagic growth, the dollars strength continues to hurt exports, unemployment is growing, manufacturing is literally dying, the mining boom is over(big surprise that one....) and inflation is well under control, yet all the so called 'experts' couldn't see why the reserve bank cut rates. A little too little too late, as far as im concerned, the economy needed a proper kick in the guts through rate cuts 12-18 months ago, the wait and see approach has involved way to much waiting and not enough seeing, just look at the number of major companies cutting back production and staff as evidence of this, not to mention those that have closed or moved overseas. The RBA should understand, that once they're gone, there gone forever, they dont come back no matter how much you reduce rates. They where so worried about the economy firing too strong off the back of mining "forecasts" that they let every other industry suffer, and now that the 'forcasts' have NOT materialised we have the daunting task of finding ways to fill the economic void created by the mentality that the mining industry would boom forever and none of the other industries should matter.
    ....its as if these guys where born yesterday - nothing last forever.
  • OzBoy | 07 May 2013, 03:36 PM Agree 0
    If George Soros had a billion dollar bet saying the RBA will drop rates and he won, then you have to wonder what the economists get paid for.

    Just follow George!!
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