One-Eyed Richmond Forum
General => General Discussion => Topic started by: one-eyed on November 01, 2011, 04:46:30 PM
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The Reserve Bank of Australia today slashed rates by 25 basis points.
Westpac won the race by cutting interest rates by the full 25 basis points less than 20 minutes after the RBA announcement. This will lower its standard variable home loan rate to 7.61 per cent.
Bank of Queensland was next out of the gates to pass on the full rate reduction.
Commonwealth Bank reduced its interest rate on standard variable home loan accounts by 25 basis points to 7.56 per cent. The CBA cut will be effective from November 4.
ANZ Ban and National Australia Bank said their interest rates were under review.
A fall in interest rates to 4.5 per cent has given homeowners a $600 reduction on annual mortgage repayments for a $300,000 loan.
http://www.heraldsun.com.au/news/more-news/tipping-a-melbourne-cup-day-interest-rates-cut/story-fn7x8me2-1226181920277
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Tony A has come out and said that they should have fallen further and that it is all julia's fault.
:lol
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:woohoo
...on top of completely missing the Melbourne cup, thus saving my money.
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:woohoo
...on top of completely missing the Melbourne cup, thus saving my money.
Being as old as sin and not having a mortgage...
Am less than thrilled about a drop in interest rates.
Have a thought for all the pensioners out there.
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Being as old as sin and not having a mortgage...
Am less than thrilled about a drop in interest rates.
Have a thought for all the pensioners out there.
You'll be even less thrilled '65 about today's IR cut down to 4.25%.
The mortgagees live in the marginal seats in the outer suburbs so that's why the pollies love interest rate cuts :yep.
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yeah, baby!
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:woohoo
...on top of completely missing the Melbourne cup, thus saving my money.
Being as old as sin and not having a mortgage...
Am less than thrilled about a drop in interest rates.
Have a thought for all the pensioners out there.
suck it up its good for everyone
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suck it up its good for everyone
I will cope.
I must admit I would prefer to be mortgage free than be debt.
But there are lots (and lots) of pensioners who will be doing it a little tougher because of this rate fall.
Don't kid youself that it is good for everyone.
:cheers
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suck it up its good for everyone
I will cope.
I must admit I would prefer to be mortgage free than be debt.
But there are lots (and lots) of pensioners who will be doing it a little tougher because of this rate fall.
Don't kid youself that it is good for everyone.
:cheers
good for construction, good for first home owners, good for retail, good for every home owner in the country, good for families, bad for banks
I think i have you covered pal
fall in rates well you should've parked your cash in a term deposit.
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Interest rate cuts make me horny.
And a little gassy.
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0.50% rate cut just announced, more like 0.30-0.35 after the banks bend us over
Very necessary IMO.
New Building and Retail need a kick up the arse
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0.50% rate cut just announced, more like 0.30-0.35 after the banks bend us over
Very necessary IMO.
New Building and Retail need a kick up the behind
So true
Because if the banks cut mortgage rates (and there's no guarantee they will) all they will end up doing is putting the rates back to where they were before they (the banks) lifted them outside of what the RBA did for the last couple of months which was leaving the rates un-changed.
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NAB only passed on a 0.32% cut. :help
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NAB only passed on a 0.32% cut. :help
Ooh but Wayne said to angry Tucker and walk
To tell you the truth he repeats it all the time, but people don't listen. Some people have no idea what their rate is :banghead
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bottom line is nobody can do anything about it and the banks know it.
Unlike the US central bank, ours is an independent body, but the banks are wielding more and more power. Supposedly this rate cut was made so big because the reserve bank expects the banks not to pass on the full cut, but are hoping they pass on enough of the cut to stimulate consumer spending.
So as media becomes more concentrated in it's ownership, and thus political influence through corporate progonda increases, so to does the influence of the private banks on the countries economic decisions.
We are still a long way behind the US, but big business is having more and more influence on the running of the country.
Isnt greed a wonderful thing?
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bottom line is nobody can do anything about it and the banks know it.
Unlike the US central bank, ours is an independent body, but the banks are wielding more and more power. Supposedly this rate cut was made so big because the reserve bank expects the banks not to pass on the full cut, but are hoping they pass on enough of the cut to stimulate consumer spending.
So as media becomes more concentrated in it's ownership, and thus political influence through corporate progonda increases, so to does the influence of the private banks on the countries economic decisions.
We are still a long way behind the US, but big business is having more and more influence on the running of the country.
Isnt greed a wonderful thing?
Extrapolate the last 20 or 30 years into the future. We aint seen nothing yet!
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bottom line is nobody can do anything about it and the banks know it.
Unlike the US central bank, ours is an independent body, but the banks are wielding more and more power. Supposedly this rate cut was made so big because the reserve bank expects the banks not to pass on the full cut, but are hoping they pass on enough of the cut to stimulate consumer spending.
So as media becomes more concentrated in it's ownership, and thus political influence through corporate progonda increases, so to does the influence of the private banks on the countries economic decisions.
We are still a long way behind the US, but big business is having more and more influence on the running of the country.
Isnt greed a wonderful thing?
Extrapolate the last 20 or 30 years into the future. We aint seen nothing yet!
I blame Big Kev.......
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The banks make something like $12m every day they hold off cutting their rates. They of course think we actually believe them when they say they have to wait to lower mortgage rates and by less than the reserve bank rate cut yet deposit rates are lowered instantly and by the full 50 basis points.
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The banks make something like $12m every day they hold off cutting their rates. They of course think we actually believe them when they say they have to wait to lower mortgage rates and by less than the reserve bank rate cut yet deposit rates are lowered instantly and by the full 50 basis points.
yep spot on
one way the banks lose money is when you switch lenders every few years.
The thing is a lot of people complain and whinge but rarely do they make the switch.
How anyone has a loan with CBA and Westpac still is beyond belief.
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it costs money to switch loans, one way or another.
as for changing banks, if they all behave the same, who do you change to. you single out com banks and westpac yet the con back dropped rates more than NAB? ANZ are holding off and westpac will announce today their meagre cut.
they are all tarred with the same brush and have one thing in mind only, making as much money as possible. they all act the way they don knowing that even if people were to swap banks, they are the main seats on the merry go round round and what they lose with hand they will gain with the other.
just face it, they all pure scum
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The banks make something like $12m every day they hold off cutting their rates. They of course think we actually believe them when they say they have to wait to lower mortgage rates and by less than the reserve bank rate cut yet deposit rates are lowered instantly and by the full 50 basis points.
I don't think they think that we actually believe them. It's more that they know we can't do anything (much) about it, and they don't really care. The PR machine for each bank of course goes into action to defend it and manage 'perceptions' but at the end of the day anything goes and they really don't GAS about the reality beyond raking up more and more wealth.
Over in the coming years what we will see is a complete shift in policy with the banks raising and dropping there rates with zero regard to the Reserve Bank, which will become obsolete. The banks will increase rates to the point where the majority of the population JUST afford repayments, without crippling the population and hence their own source of revenue.
That's already happened to an extent with utilitiy bills and groceries, but those two will get worse too.
Sure is a different Australia to 20 years ago. We've all let ourselves be bent over. Extreme capitalism at its finest. Legalised theft.
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How anyone has a loan with CBA and Westpac still is beyond belief.
Not really why would we change? Have a fantastic deal with the CBA
Locked into a nice little fixed rate that is less than the current fixed & variable rates and is less than the fixed rate we came out of when it was up for renewal. So because of that we've kept the repayments the same based on the higher rate which has put us years ahead on repayments :thumbsup
Seriously, smart planning and a fixed rate can give you massive advantages :)
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it costs money to switch loans, one way or another.
as for changing banks, if they all behave the same, who do you change to. you single out com banks and westpac yet the con back dropped rates more than NAB? ANZ are holding off and westpac will announce today their meagre cut.
they are all tarred with the same brush and have one thing in mind only, making as much money as possible. they all act the way they don knowing that even if people were to swap banks, they are the main seats on the merry go round round and what they lose with hand they will gain with the other.
just face it, they all pure scum
i agree 100% but comparing purely on interest rates Westpac and CBA are the most expensive and have always been more expensive than NAB and to some point ANZ. Yet they are the most sought after.
IMO Bank of Melb and Homeside lending are the best 2 by far
As for switching costs well not anymore. Just admin charges remain now.
As for your fixed rate WP obviously thats a different cattle of fish, of course you can end up on top but 97% of Aussies lose out.
In all honesty Wayne Swan says it religiously to plead with your bank to get a better rate yet no one does it. The silly call centre girl are not the ones to hand it out, must go straight to complaints department
I have a comparable rate with Homeside/BOM but only because i tell them im leaving. The rate increase outside of the RBA few months ago wasn't passed on to me at all, because i made the call.
Anything to get ahead of those thieves il do it so should you guys.
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As for your fixed rate WP obviously thats a different cattle of fish, of course you can end up on top but 97% of Aussies lose out.
I don't think it would be 97% but I understand your point
Part of it certainly comes down to timing and having a feel for what is going to happen in the market place.
But having said that when we built our house (13 odd years ago) I made the call for to lock in a fixed rate, simply to give us the certainty regarding our repayments and knowing they wouldn't change for a fixed period of time = interest rate changes don't hurt us. We have kept doing that and haven't looked back - key is to not lock in for a long term :thumbsup
We started out with a 30 year mortgage; now based on the numbers we will have the thing paid off in less than 9 years. And BTW we haven't made one extra repayment all we've ever done is pay the instalments as they fall due
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by admin charges do mean establishment fees Daniel? they can be quite substantial or have they been scrapped as well.
One of the criticisms of making it easier to change banks by abolishing exit fees is that banks would just recoup their money elsewhere.
Now that you mention it, the fist step just recently in the banks adjusting their interest rates independently of the reserve bank co-inside, roughly, with the abolishing of exit fees.
sometimes there are other factors besides interest rates in determining which bank you go with. westpac for eg are one of the few that offer low doc loans, something those that are self emplyed often require. nor do all banks offer interest only loans.
in our case as well, their insurance premiums they offered for borrowers were better than any we could get elsewhere.
dont get me wrong, im not a west pac fan boy, but the set up we have suits us, at the moment. i also have a business ac with anz and my eftpos facility and settling account with nab. in each case it was what suited me at the time.
Banks are the cornerstone of Capitalism, and they have us all by the short and curlies. the whole concept of regularly swapping and changing banks over 1% and less interest rates differences is flawed and just doesnt work in practice, sadly.
What really poos me is the whole GFC was largely due to the actions and subsequent collapse of banks/lending institutions, yet it was taxpayers the world over that had to bail them out, just for them to continue on their deregulated, greedy ways.
The sad and dangerous irony in the system is that the largest capitalist country is in now in debit to the largest communist country in the world, to such an extent that if china were to call in it's debts, the US would be bankrupt overnight.
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by admin charges do mean establishment fees Daniel? they can be quite substantial or have they been scrapped as well.
One of the criticisms of making it easier to change banks by abolishing exit fees is that banks would just recoup their money elsewhere.
Now that you mention it, the fist step just recently in the banks adjusting their interest rates independently of the reserve bank co-inside, roughly, with the abolishing of exit fees.
sometimes there are other factors besides interest rates in determining which bank you go with. westpac for eg are one of the few that offer low doc loans, something those that are self emplyed often require. nor do all banks offer interest only loans.
in our case as well, their insurance premiums they offered for borrowers were better than any we could get elsewhere.
dont get me wrong, im not a west pac fan boy, but the set up we have suits us, at the moment. i also have a business ac with anz and my eftpos facility and settling account with nab. in each case it was what suited me at the time.
Banks are the cornerstone of Capitalism, and they have us all by the short and curlies. the whole concept of regularly swapping and changing banks over 1% and less interest rates differences is flawed and just doesnt work in practice, sadly.
What really poos me is the whole GFC was largely due to the actions and subsequent collapse of banks/lending institutions, yet it was taxpayers the world over that had to bail them out, just for them to continue on their deregulated, greedy ways.
The sad and dangerous irony in the system is that the largest capitalist country is in now in debit to the largest communist country in the world, to such an extent that if china were to call in it's debts, the US would be bankrupt overnight.
good points Al. In fact i never believed it or was just ignorant to it all but you and DD are right.
I believe the banks are recouping their losses on the abolishment of exit fees, through increase in rates. Establishment fees are rarely used, most of them waive this and just charge an annual fee. To the banks credit they haven't made a mockery of the banning of exit fees, by creating another fee, but like i said they have had a win with their rate rise outside of RBA.
I don't know much about being self employed, but absolutely its not features and benefits, but to every day Australians it is. I meet people all the time that are so ignorant, or just dont care.
I don't particulary like any of the banks but at least some reward loyalty in customers, and i just hope people get the message they they can walk or plead with a rate cut.
So true DD the banks know it, Swan knows it, everyone knows the greed in banks always win in the end and IMO things will get worse in reference to raising rates. The RBA will cease to have any influence at all IMO.
Have you guys seen Wall Street 2 and Margin Call?
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Slave society.
Are we really free?
Are we told to be?
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RBA has cut official rates by another 25 basis points. The official rate is now 3.5%.
http://www.heraldsun.com.au/news/mortgage-relief-as-the-reserve-bank-of-australia-cuts-rates-in-june/story-e6frf7jo-1226384725200
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7NewsMelbourne twitter:
"BREAKING: RBA interest rate cut by 0.25 per cent to 3.25 per cent"
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Down to 3% now after yesterday's cut. The RBA should've done it on Cup Day rather than waiting another month. Anyway I won't hold my breath waiting for the banks to follow the RBA's lead :nope.
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Down to 3% now after yesterday's cut. The RBA should've done it on Cup Day rather than waiting another month. Anyway I won't hold my breath waiting for the banks to follow the RBA's lead :nope.
Got my rate cut for the full amount yesterday but I'm with ING and not any of the big boys who always seem to take their bloody time in passing on the rate cuts.
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Down to 3% now after yesterday's cut. The RBA should've done it on Cup Day rather than waiting another month. Anyway I won't hold my breath waiting for the banks to follow the RBA's lead :nope.
Got my rate cut for the full amount yesterday but I'm with ING and not any of the big boys who always seem to take their bloody time in passing on the rate cuts.
Yep the big boys only pass on the full amount and instantly when rates go up not down (http://kenoshamargetwo.files.wordpress.com/2012/09/00-08-29-thumbs-down-smiley.gif?w=595).
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RBA has cut interest rates by 0.25%. Official rate now down to 2.75%.
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George Soros would of made some coin after taking his $1 billion dollar position on the RBA cutting rates.
The Australian dollar fell in overnight trade on the back of rumours that billionaire US investor George Soros is betting the local currency will fall.
The Aussie dollar slipped from $US1.0284 in late local trade to as low as $US1.0222 in offshore trade as traders reacted to unconfirmed rumours that Mr Soros - who famously shorted the British pound back in 1992 - was planning a raid on the dollar ahead of today's interest rate announcement.
The dollar has since recovered some of its overnight losses and was buying $US1.0253 this morning.
A large number trades shorting* the dollar totalling $US1 billion were placed via Hong Kong and Singapore late Monday, believed to be by Soros Fund Management.
"Someone ... seems to be betting on a rate cut," said one Sydney-based FX trader. "I've heard the George Soros rumour tonight. A billion dollars sounds like a lot, but it's not enough to move the Australian dollar and it's not a lot for George Soros, but there is a play happening in the FX market.
"If it is him, it's probably a bet on a rate cut. These days a billion bucks can't do much to the Aussie."
ANZ current strategist Andrew Salter said he was aware of the rumour of a short position on the Australian dollar, adding that the "appropriate position to have in the Australian dollar is short given the outlook for world growth and the outlook for the Reserve Bank".
"Our house view for the Australian dollar is for it to remain around $US1.05 to mid-2014. That said, there are building downside risks to that forecast," Mr Salter said.
http://www.smh.com.au/business/markets/is-soros-shorting-the-dollar-20130506-2j3nr.html
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Good for the economy good for business. Not so good for the pensioners.
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Good for the economy good for business. Not so good for the pensioners.
Good for Mortgage holders if you are on a variable rate ;D
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Good for the economy good for business. Not so good for the pensioners.
Good for Mortgage holders if you are on a variable rate ;D
What's a Mortgage?
:outtahere
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RBA has just cut interest rates by 0.25% down to 2.5%.
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Another cut of 0.25%
Cash rate 2.25% and banks charge us 4.75 so its no wonder why they are the most profitable businesses in the country
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Reserve Bank has cut official interest rates by 0.25% to a new record low of 1.25%.
https://www.news.com.au/finance/economy/interest-rates/rba-slashes-cash-rate-from-record-low-of-15-per-cent-for-first-time-since-2016/news-story/29dc94b821067fd4c5e6d417610d25fa