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Top brokers unsure of bank rate cut reaction

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Australian Broker | 02 May 2012, 06:00 AM Agree 0
Leading brokers have expressed uncertainty as to how much of the RBA's cash rate reduction will be passed on and are expecting banks to 'duck and weave'
  • Country Broker | 02 May 2012, 12:15 PM Agree 0
    This is all speculation , The Majors will wait and see what their so called "cost of funds" is after this cut before any announcments . The BOQ maybe have set it who knows , all smake and mirrors at present!
  • Russell Murphy | 02 May 2012, 12:17 PM Agree 0
    The 0.50% reduction to 3.75% marks a “low-point” since March 2010 & needs little interpretation; it’s all about stimulus & confidence. The past two feebel rate cuts have done little for confidence and instead a wary public has paid off its credit cards, car loans and mortgages. The flow on to the wider economy has been poor. So whilst yesterdays stimulatory intent can’t be faulted, unless Canberra can engender economic confidence I suspect more of the same public caution. That’s borne out by the yield curve that today predicts a cash rate sub-3% within 2 years. I dont think mortgage holders are yet rubbing their hands in glee but anyone with a savings account should probably start despairing now. So this jumbo rate cut is designed to have a far bigger impact than its predecessors, but if not the RBA is sure to cut again & the next RBA Board meeting is on June 5 2012.
    I'll stay tuned.
  • john paisley | 02 May 2012, 12:18 PM Agree 0
    ING bank dropped their 12 month term deposit rate by 50 basic point on monday, I wonder what they will do to the lending rate?
  • Suspicious | 02 May 2012, 01:51 PM Agree 0
    We havent heard from the majors yet as they probably haven't agreed on whose turn it will be to get the bad publicity and pass on the lowest rate reduction . I think it must be CBA's turn now .... or is it NAB's?
  • Damien | 02 May 2012, 10:48 PM Agree 0
    From memory the order of “whose turn is it to be the bad guy” goes something like this.

    (1) Westpac - Banana Shocker

    (2) CBA – Melbourne Cup day Shocker

    (3) ANZ- Now dancing to their own tune

    (4) NAB – Getting back together with the other three!
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