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  1. #1
    CC International Master
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    Reserve Bank hits a six

    The Reserve Bank certainly decided it was a case of Sydney or the Bush today with a one per cent cut in tax rates.

    These guys mean business.

  2. #2
    Reader in Slood Dynamics Rincewind's Avatar
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    Quote Originally Posted by Davidflude
    The Reserve Bank certainly decided it was a case of Sydney or the Bush today with a one per cent cut in tax rates.
    I thought it was the treasurer who determined the tax rate.
    So einfach wie möglich, aber nicht einfacher - Albert Einstein

  3. #3
    CC Grandmaster Capablanca-Fan's Avatar
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    Question

    How much of the interest rate cut will the banks pass on though?
    “The history of the 20th century is full of examples of countries that set out to redistribute wealth and ended up redistributing poverty.”
    “There’s no point blaming the tragedies of socialism on the flaws or corruption of particular leaders. Any system which allows some people to exercise unbridled power over others is an open invitation to abuse, whether that system is called slavery or socialism or something else.”—Thomas Sowell

  4. #4
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    Quote Originally Posted by Jono
    How much of the interest rate cut will the banks pass on though?
    80 points or .8 of 1%
    No this is silly, the whole premise is silly and very badly written. I'm the senior officer here and I've not had a funny line yet so I'm stopping it.

    Sydney International Open

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  5. #5
    CC Grandmaster Garvinator's Avatar
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    I think the RBA had had a gutful of banks not passing on interest rate cuts and so cut rates by 1 per cent to guarantee that about .75 is actually passed on to mortgage holders.

    As the banks get to decide how much they put up/take down interest rates after the RBA makes a decision, the RBA is rather irrelevant and so the RBA decided to go 'all in' today with their decision, forcing the banks to give a proper rate cut.

  6. #6
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    Quote Originally Posted by Jono
    How much of the interest rate cut will the banks pass on though?
    It's interesting that now it's the Liberals telling banks they should be passing on 100% of the cut, while Labor is the one dampening expectations by referring to the banks' increased costs.

  7. #7
    CC Grandmaster Capablanca-Fan's Avatar
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    Quote Originally Posted by pax
    It's interesting that now it's the Liberals telling banks they should be passing on 100% of the cut, while Labor is the one dampening expectations by referring to the banks' increased costs.
    It is. So which policy do you prefer?
    “The history of the 20th century is full of examples of countries that set out to redistribute wealth and ended up redistributing poverty.”
    “There’s no point blaming the tragedies of socialism on the flaws or corruption of particular leaders. Any system which allows some people to exercise unbridled power over others is an open invitation to abuse, whether that system is called slavery or socialism or something else.”—Thomas Sowell

  8. #8
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    Quote Originally Posted by ggrayggray
    I think the RBA had had a gutful of banks not passing on interest rate cuts and so cut rates by 1 per cent to guarantee that about .75 is actually passed on to mortgage holders.
    I don't think the RBA cares one way or the other. They set the base rate and the banks do whatever they see fit to do. A significant proportion of banks' credit costs are not linked with the base interest rate, so it is reasonable to expect rates to move not entirely in sync with the official rate.

  9. #9
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    Quote Originally Posted by Jono
    It is. So which policy do you prefer?
    Well it certainly isn't up to the Government to tell banks how to set their prices, and I very much doubt that it has any real effect. A certain amount of "pressure" is expected politically, but on the whole it's a bit of a pointless game.

  10. #10
    CC Grandmaster Desmond's Avatar
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    Quote Originally Posted by pax
    Well it certainly isn't up to the Government to tell banks how to set their prices, and I very much doubt that it has any real effect. A certain amount of "pressure" is expected politically, but on the whole it's a bit of a pointless game.
    Even if it made no difference, it would be nice if Swan at least pretended to be trying to do something.
    So what's your excuse? To run like the devil's chasing you.

    See you in another life, brotha.

  11. #11
    CC Grandmaster Capablanca-Fan's Avatar
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    Quote Originally Posted by pax
    Well it certainly isn't up to the Government to tell banks how to set their prices, and I very much doubt that it has any real effect. A certain amount of "pressure" is expected politically, but on the whole it's a bit of a pointless game.
    Agreed.
    “The history of the 20th century is full of examples of countries that set out to redistribute wealth and ended up redistributing poverty.”
    “There’s no point blaming the tragedies of socialism on the flaws or corruption of particular leaders. Any system which allows some people to exercise unbridled power over others is an open invitation to abuse, whether that system is called slavery or socialism or something else.”—Thomas Sowell

  12. #12
    CC FIDE Master Southpaw Jim's Avatar
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    It's more shameless populist posturing on the part of the Liberal opposition is what it is. The leader's changed, the politicking hasn't. It's an easy call for any politician to demand 100% pass-through, knowing full well that the banks will do what they are legally required to in the interests of their shareholders.

    They might as well be telling grocers how much to charge for their apples.
    "the other lefty"

  13. #13
    CC Grandmaster Capablanca-Fan's Avatar
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    Quote Originally Posted by Southpaw Jim
    It's more shameless populist posturing on the part of the Liberal opposition is what it is. The leader's changed, the politicking hasn't.
    Turnbull is really a Labor politician at heart anyway.

    Quote Originally Posted by Southpaw Jim
    It's an easy call for any politician to demand 100% pass-through, knowing full well that the banks will do what they are legally required to in the interests of their shareholders.
    And among the biggest shareholders are the superannuation funds that help fund the retirements of ordinary Australians.

    Quote Originally Posted by Southpaw Jim
    They might as well be telling grocers how much to charge for their apples.
    True enough.

    Terry McCrann slams Turnbull, and points out that the RBA cut 1% with the intention that banks would cut by 0.75%, and they actually cut by 0.8%.
    “The history of the 20th century is full of examples of countries that set out to redistribute wealth and ended up redistributing poverty.”
    “There’s no point blaming the tragedies of socialism on the flaws or corruption of particular leaders. Any system which allows some people to exercise unbridled power over others is an open invitation to abuse, whether that system is called slavery or socialism or something else.”—Thomas Sowell

  14. #14
    CC FIDE Master Southpaw Jim's Avatar
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    Quote Originally Posted by Jono
    Turnbull is really a Labor politician at heart anyway.
    Labor was too politically astute to let him join. The Liberals, however...

    Terry McCrann slams Turnbull, and points out that the RBA cut 1% with the intention that banks would cut by 0.75%, and they actually cut by 0.8%.
    And the guy used to be a merchant banker. He must think Australians are quite stupid and greedy to be running such a line. Unfortunately, in general he's quite possibly right...
    "the other lefty"

  15. #15
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    Quote Originally Posted by Boris
    Even if it made no difference, it would be nice if Swan at least pretended to be trying to do something.
    I actually don't think it is a good thing when politicians run around pretending to be able to control thing's that they can't.

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