Interest Rates

[Hawkeye77]

The RBA holding was a surprise, I think we'll still get a good cut tho, probably at least .75 I think.
If the house prices are still going down in the Feb QV figures it could help the chances of a good cut.
Aussie has only had 3-4% decline in house prices so far I think, so maybe can afford to hold off a little, their inflation may still be a bit higher than ours.
What is the point in RBNZ holding off really? things are sharply getting worse overseas, may as well give people a little extra money as soon as possible, if they don't want to save it that's their problem, inflation is not a problem.
It's pretty obvious to most that the OCR will get to either 2 or 2.5% anyway, it's now just a matter of time.

[eri]

if nz rates drop below oz rates then a lot of money will flow across the ditch in search of the higher returns, pick a time when the nz$ is up against the $A and win both ways

[Badger]

Because Hawkeye77 as they lower interest rates your cash is becoming worthless in regards to *purchasing power* and *store of wealth*... this in turn creates a whole set of new problems to deal with that the media nincompoops are not informing us about...

[Perry]

"Hawkeye77"

What's that refer to

[Austrokiwi]

Perry see previous page:

The RBA holding was a surprise, I think we'll still get a good cut tho, probably at least .75 I think.
If the house prices are still going down in the Feb QV figures it could help the chances of a good cut.
Aussie has only had 3-4% decline in house prices so far I think, so maybe can afford to hold off a little, their inflation may still be a bit higher than ours.
What is the point in RBNZ holding off really? things are sharply getting worse overseas, may as well give people a little extra money as soon as possible, if they don't want to save it that's their problem, inflation is not a problem.
It's pretty obvious to most that the OCR will get to either 2 or 2.5% anyway, it's now just a matter of time.

[Perry]

Thanks. I wondered if it was some secret
code between Badger and Eri. My brain must've
been @ half mast. Too much time out in the sun,
today, doing irrigation things.

[Hawkeye77]

Because Hawkeye77 as they lower interest rates your cash is becoming worthless in regards to *purchasing power* and *store of wealth*... this in turn creates a whole set of new problems to deal with that the media nincompoops are not informing us about...

Yeah cash will have less value because you can't easily earn the same interest on it.

But the problem at the moment is that cash has too much value anyway because most other things are declining in value relative to cash, and that's what's causing the problem, ie too much deflation.
Then everything stops in it's tracks and unemployment etc.

I'd rather see them use the monetary policy option than to go stupid with a fiscal policy spending up on everything in sight, that just puts everyone in more debt, and just has a short term effect.

It looks like it might be more likely for a .5 now actually, but you never know the bad news from overseas just keeps coming.

[tpr2]

I think the RBA are regretting their decision now with new reports released that Aussie has had it's first retraction on growth in a decade coming as a bit of a surprise.

I think we will still get at least .5 reduction with an expectation that the RBA will lower next time and probably significantly to make up for the missed opportunity this time.

[Jabroni01]

I notice that ASB's 5 year rate just increased to 6.65% today up from 6.5%

Jabs

[nzfrazer]

My hat's off to you Mike O, who locked in 5yrs at 5.89% from memory. Looks like you picked the bottom mate!

[tpr2]

nah you watch..... This is just a bit of maneuvering so that they can make bigger drops when the OCR comes down and look like hero's.

You know the old, look we dropped the rates by the whole .5% ...hehehe after we put them up the week before.

[dandan]

nah you watch..... This is just a bit of maneuvering so that they can make bigger drops when the OCR comes down and look like hero's.

You know the old, look we dropped the rates by the whole .5% ...hehehe after we put them up the week before.

I think you're right tpr2.

[tpr2]

yeah too much flack at the last drops when the whole amount was not passed on.

The marketing boys in the bank will know that passing the whole amount on to the customer will give them some free marketing as the media reports what good boys they are.

How many customers will go to the bank who looks like the good guy because the bank passes the whole rate cut on.

[Matt Gilligan]

Interest Rate Break Costs

I have a break cost calculator, that I give to clients ( and friends) for free is anyone is interested.

Email me [email protected] and I'll send it out. It identifies cost-benefit. IE Break cost v projected savings.

[Jabroni01]

yeah too much flack at the last drops when the whole amount was not passed on.

The marketing boys in the bank will know that passing the whole amount on to the customer will give them some free marketing as the media reports what good boys they are.

How many customers will go to the bank who looks like the good guy because the bank passes the whole rate cut on.

I'm hoping then, that when ASB had the 5.95% rate for 5 years no one followed suit so they raised them to suitable levels in line with the other banks.

Not sure then why they did the increase to 6.65% last week, hopefully its as you mentioned and so they can pass through a bigger cut after the OCR announcement. Fingers and toes crossed to see what happens, and if I make a move on them of not

Jabs