RBA stuns markets with massive rate cuts

[Collin Li]

100 basis points

http://business.theage.com.au/business/rba-stuns-with-massive-rate-cut-20081007-4vi1.html

[marbs]

How much will this affect the exchange rate? Do you think it could get below 0.70 US dollar soon

[Eriny]

I don't know about less than 70c, but it will almost certainly lower and it seems to be heading that way.

Well, the mortgage belt has got the lower rates they wanted.

[brendan]

I think it was way too much. Inflationary pressures still exist.

[AppleXY]

Actually I don't think the $A will depreciate any further than it is. They are support forces existent and Australia still seems like a viable place to invest, unlike other OECD countries lol.

[costargh]

When I saw this at 4pm (or there abouts) I screamed out in my nerdy economics voice (try imagine it) "OMGG 1 PER CENT WHAT THE FUCK"

I then proceeded to message everyone I knew who would be interested in it
"RBA JUST CUT INTEREST RATES BY 1% WTF"

Weird how I can get so excited by silly changes like this lol

[Collin Li]

When I saw this at 4pm (or there abouts) I screamed out in my nerdy economics voice (try imagine it) "OMGG 1 PER CENT WHAT THE FUCK"

I then proceeded to message everyone I knew who would be interested in it
"RBA JUST CUT INTEREST RATES BY 1% WTF"

Weird how I can get so excited by silly changes like this lol

Can't beat my first year macroeconomics lecturer. I got linked to his Lectopia recording, hahahaha. He's such a nerd. He interrupted the whole lecture (full Copland Theatre, fits around 200 I'm guessing?), to refresh the RBA website as the announcement came out (live).

He refreshes. You hear this pause. He gets a bit frustrated coz it's loading, but then you hear the lecture go: "whoaaa!"

He pauses for a looong time. "Wow. Would you look at that."

"For once in my life, I'm speechless"

"That's incredible, that is JUST incredible!"

He made a comment saying we're obviously in much more trouble than he expected.

[costargh]

HAHAHA gold! i love that coblin

[marbs]

"crushed by the crash"

http://news.ninemsn.com.au/article.aspx?id=642563



And @ Apple, I don't think Australia is still a very 'viable' place to invest, as the decrease in the AUD is evidence that people are becoming more and more worried about the state of the market. Although you're right, I would still be a better place to invest than other OECD countries.

[AppleXY]

Why is a decrease in interest rates such a happy time for people? lol

- It shows that Australia's banking system is also fragile at these current times (as 25 bps cut won't be passed onto the consumer)
- Slowing down of econ
- Decrease in Cash Deposits (CDs) ROI :oo

lol

[marbs]

I don't know about less than 70c, but it will almost certainly lower and it seems to be heading that way.

Well, the mortgage belt has got the lower rates they wanted.

now trading at 66 cents, I can't believe I went to America and got about .96 Us for 1 Aus dollar, probs should have bought more.

[costargh]

Yeh I saw it before on ninemsn. So depressing. I wanted to buy a camera (imported from overseas) when it was at 96c and the camera was going to cost me $630 or something around that. Now the same camera would cost be $800 because of the falling aussie dollar.

So depressing.

[Collin Li]

I think it was way too much. Inflationary pressures still exist.

Nilss Olekans (the first-year macroeconomics lecturer, and the head of department of economics at the moment I think) scoffed at Glenn Stevens' statement which ended on inflation, justifying the rate cut because inflation seems to be under control now.

He laughed and said "nobody cares about inflation right now."

[excal]

I don't know about less than 70c, but it will almost certainly lower and it seems to be heading that way.

Well, the mortgage belt has got the lower rates they wanted.

now trading at 66 cents, I can't believe I went to America and got about .96 Us for 1 Aus dollar, probs should have bought more.

That would've been a good forex trade.

[AppleXY]

in case no-one has posted it earlier:

http://www.rba.gov.au/MediaReleases/2008/mr_08_20.html