The RBA has cut the cash rate for the first time since 2020. This might be a relief for homeowners, but is inflation really under control?
RBA Cuts Cash Rate for The First Time Since 2020
nned2say on 18/02/2025 - 14:40
Last edited 18/02/2025 - 14:47
Last edited 18/02/2025 - 14:47
Poll Options
- 29Banks will cut rates immediately
- 320Banks will cut rates within a month
- 14Banks will cut rates within a week
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When do we get to vote for the RBA board?
Hope someday you will understand why. Fingers crossed.
You stand for Parliament, get into Cabinet and twist the Prime Minister's arm.
When you're prepared to go the way of Argentina pre Milei…
Worst idea ever.
You mean that Albo will announce the election day now that this has been announced and claim a victory (not)
Yes. Now let's go buy a new Landcruiser and a trailer for the jetskis.
Torn between graphite and sandy taupe sigh
Celebration Time! Buy Both!
RBA agent: sir… sir please stop!
Sandy tapue. Will hide the evidence after you do bags with the boys
Get the troopy variant and you can sleep it off in the back.
I take it you’re not the bell end in NSW with a late model Hilux and the number plate MR ARB (also decked in ARB gear)?
@Protractor: I’ve only ever seen it from the back, there’s no branding. Just a plain silver ute from behind. Even the amount of ARB gear doesn’t make it look like it would be a rep mobile
@Gunnar: There's a LC at a local branch with ARB and the branch name or similar on number plates. No decals on the body, just every accessory known to man. From memory it's a darkish silver grey colour
Should have a poll to guess how long it will take for the first bank to follow. I'd say at least a month.
Done
how long it will take for the first bank to follow
Already happened.
"Major banks immediately followed suit, with NAB and Westpac announcing they would pass on the full cuts to borrowers within minutes of the RBA announcement. CBA quickly followed suit. Now comes the lag period before new rates come into effect for borrowers. For NAB and CBA customers, it will be 10 days, while for Westpac, it will be 14 days (4 March)." Source
EDIT: You can check the status of your own lender here:
https://www.finder.com.au/home-loans/interest-rate-cuts
Already happened.
Announcing it happened doesn’t mean it already happened
Well Athena has passed on the full cut effective as of today, so if we're counting all lenders, then it's still already happened.
Not all heroes wear capes, thanks!
My lender (Bendigo Adelaide bank) has yet to announce interest rate movements, but helpful to see what other banks are doing.
The banks were always going to pass on the full first rate cut. It'll be later when/if a few more cuts come that they will be less inclined to do so.
Lucky refinancing is not too hard. All it takes is a threat of leaving.
My experiences have been they don't care till you discharge and get put through to retentions, though I have seen other get a cut just with a phone call.
If thats the case they were getting ripped off in the first place.
Not true. Threat issued oh no we can't match that. I'll discharge today. Okay.
They can't go super low. Like 5.44% low.
I've tried. St George.
Avo's will be out of stock;-)
Buying take away coffee shares NOW!
I welcome the cut in interest rates. It will help pay down my mortgage faster.
I just hope we, as Australians, don't go nuts bidding up house prices even faster and further. 'Whee! I can borrow another $30k! Bid!'
Yes, if we collectively can restrain ourselves then we might get more cuts. Fingers crossed
It is stupid the price of houses these days. Should have bought in early 2000s.
Yeah, sadly my piggy bank in primary school just didn't have quite enough to get my first house and I didn't get the silver spoon like Dutton to get a house at 18 (what a flog, as if working hard while full time at school would get you $100k house deposit for even a super cheap house).
Hate to disappoint you, but………….
It's really sad that you have no empathy for how tough real families are doing it right now.
That cohort has my sympathy. I'm pointing out that there's an equal amount of ppl who are wasteful, and despite making shit choices, blame everyone else for those poor decisions. Empathy is a rare commodity. I reserve it for the ppl who CAN help themselves and at least try, or those who need it most.
EDIT I'm not alone (and no I aint a landlord>
“Life will continue on as normal. That is the reality for most people,” he said.
Mr Henderson said he learned years ago that there’s not much point in living and dying by interest rates.
https://www.news.com.au/finance/economy/interest-rates/frant…
Praise the Boomers on the RBA board
Why? They paid their houses off decades ago. Rate cuts hurt their savings!!
I'm sure they've got heaps of investment properties mortgaged to the hilt to offset their fat paycheques and maximise those sweet tax savings.
Blame the LNP, they have the ALP shitting bricks over abolishing neg gearing. It's another tax payer trough for the greedy .Just like $25K PA for business lunched. FFS they are deluded AHs
@Protractor: $25k for business lunches?!
And here I thought there was no such thing as a free lunch. How do I get in on that action and claim my share of lunches?
I'm sure they've got heaps of investment properties mortgaged to the hilt
So can increase rents :)
Banks started cutting deposit rates weeks ago.
Example from AMP bank
30Jan2025: AMP 6 month TD was 5.15%
31Jan2025: AMP 6 month TD cut to 4.90%
12Feb2025: AMP 6 month TD cut to 4.80%TD rates are based on the rate outlook for the relevant period and it was obvious cuts were coming. This is completely normal.
You do not cut rates unless you broke something.
The traders did not like the news and it is reflected in the stockmarket movements today.
Reflation will occur as a result.
Traders priced this in weeks ago…..
Yes, the expectations were mostly priced in.
The trend already started before the announcement was made.
Either way, it's down down down.
Then we should put a tariff, or better still a handbrake, on migration.
@Protractor: That is one solution, but the immigration system is already structured in a way that limits political intervention.
The justice system, including both the AAT and the Federal Courts, continue to allow individuals to file appeals and these appeals are largely successful if the applicants have followed the proper procedures to migrate to Australia.
Unless these immigration rules are altered arbitrarily, the broader immigration debate which we see in the media tends to be more of a political exercise.
That said, I appreciate your perspective and have given your post an upvote.
@BluebirdV: I mean existing the automatic assumption that if some members of a family migrate her, there should be an ease of passage to members of the same family for the purposes of relocating the some, most or entire family over time.It makes little sense and does not stack up anymore. We have paid childcare now.And importing more pressure onto to aged care and social security undoes the claim that the first wave was for 'essential workers'.All of this stuff is a by product of an overpopulated planet. The capitalist dragon requires and ongog fodder of bums on seats and it's unsusfeckingstainable already.
@Protractor: Yes!!!!!!
I have not agreed so hard with @Protractor in all my ozbargain days as I am agreeing right now.
And scrap student visas for "students" "studying" at the Internation College of Uber Eats Drivers.
@Foggy Fluoride Stare: The courts review cases for appeals.
The number of visas granted is government policy. It isn't legislated. That means they could change it tomorrow.
@Protractor: This is just something that useless people say when they're jealous they get outcompeted by smarter, harder working outsiders.
If a migrant has the skills to take an Aussie's job, then let him or her do it. It's a competitive world. If you can't compete, deal with the consequences…see ya. Maybe some of the Aussies who don't like migration can just migrate somewhere else where they'd find it easier.
@justworld: if only if it were about a skills shortage, this is about the big end of town creating a surplus in labour to drive down the costs, its not a free market as soon as the odds fall in your favour the flood gates open to push you down again.
Notice how there is not an influx in protected industries where there is strong demand with a strong union presence. It it were simply about skill shortage we would be bringing in constuction workers by the thousands not IT workers etc.
It it were simply about skill shortage we would be bringing in constuction workers by the thousands not IT workers etc.
The ALP is directly connected to unions, the largest and most powerful is the construction union.
This is just something that useless people say when they're jealous they get outcompeted by smarter, harder working outsiders.
So wage suppression is OK?
Importing people to outcompete the locals in low wage jobs who are so poor and desperate they will work lower than fair wages in poor conditions.
We import people at such a high rate it's greater than the Australian population birth rate, effectively doubling the population that our young and unskilled people have to compete with.
But that's OK, we can pay our unemployed citizens Jobseeker while they struggle to find employment until they drop out of the workforce, then people can explain how lazy they are.
The corporations that benefit from low wage foreign workers aren't paying the costs, our taxes are.
@greatlamp: What you call wage suppression I call healthy competition.
Competition is the best part of life. Having winners and losers makes it more fun. Just try to be a winner.
@justworld: Its not a fair or healthy competition when the rules are rigged in one sides favour. People on the lower earning end tend to be exploited becasue they can be. But I guess they should just be winners hey?
@tomfool: If they're not good enough they're not good enough; get better or learn to deal with it
I don't think the rules are 'rigged' by the way, as the opportunity is there for anyone. I say this as someone who was born in a non-English speaking country and had to learn everything for myself, and without any family wealth or connections.
@justworld: More fun for who? How do you benefit when your taxes are being spent on unemployment benefits, your community is crime ridden and your children are unsafe?
You are just trying to be an edgy moron
@greatlamp: Unemployment benefits are actually only a very small proportion of overall government spending, and that is more than outweighed by the benefits (to the community and to me) of having skilled, productive migrants in our society.
As for 'crime ridden', show me any stats which suggest overall crime has gone up in the past 30 years? You call me edgy but you're relying on tired old tropes that have no basis in fact. Shit reasoning like that is the kind of reasoning that someone without a job would use.
Life is easy. Get good at it or deal with it.
@justworld: It's not shit reasoning to make the connection between youth unemployment and crime.
You are just repeating the same tired tropes that sell mass migration. Do you have any idea what is going on in regional towns?
@greatlamp: Sure, there's a link between youth unemployment and crime. Funnily enough though, youth crime has been steadily decreasing
https://youthlaw.asn.au/the-facts-in-youth-crime/
So you can stop with the dog whistling now.
You are trying to stand up for idiots - idiots who have so few skills that they are worried some bloke with zero linguistic or cultural or economic capital is going to steal their jobs. If someone is THAT stupid, he or she deserves to lose his or her job
See ya…
@justworld: So, you don't have any idea and you prefer to laugh at the poor. We've already established that. Using national averages to paper over issues in the regions is exactly the play used to promote mass migration. If you are content being played as a fool carry on
@greatlamp: Yeah, how dare I use statistics lmfao.
Where are your stats? Hmmm? Shitty critical reasoning like yours is the kind of critical reasoning that gets your job replaced by a migrant who can actually do stuff.
Funny, apparently I'm the one played for a fool when I benefit from migration and I'm not the one complaining about others taking my job!
In our cities, areas of high unemployment are frequently concentrated in what were previously manufacturing areas. Statistical Area Level 2 (SA2) level data shows even more uneven geographical disparities. Bankstown in NSW has averaged an unemployment rate of 11.9% since the Coalition took power in Rockhampton City, Queensland, unemployment is at astaggering 22.8% over the same period
https://www.aph.gov.au/DocumentStore.ashx?id=91f653a3-992e-4…
@greatlamp: Except that says nothing about crime rates, which was your original contention. Do you like talking shit, or does it just come so naturally that you don't even realise it?
The reason they have high unemployment is because they're areas full of idiots and halfwits whose jobs involve sticking tab A into slot B.
Except that says nothing about crime rates, which was your original contention. Do you like talking shit, or does it just come so naturally that you don't even realise it?
I expect your IQ must fall on the pointy end of the bell curve if you need proof those same areas have social issues.
The reason they have high unemployment is because they're areas full of idiots and halfwits whose jobs involve sticking tab A into slot B
And here is the evidence for my contention.
I find people like you fascinating. Able to mask your subpar intellect with a strong vocabulary and blissfully unaware of your limitations. A testament to the value of compulsory education.
@justworld: That’s not the issue.
The issue is the migrants coming in, undercutting, underquoting, undercharging.
Without sharing my 2 bedroom unit with 4+ working people I can’t compete.People will generally always take the cheapest option and it has this knock on effect, I’m not willing to accept below minimum wage but so many migrants are, and do. I went from charging $160/hour 5 years ago with no issues, down to $75/hr now and still losing work, contracts etc against migrants who don’t have white cards etc, and charge $20-$25/hour.
@May4th: Isn't that what Dutton has proposed? A fee ticket in if you have $5M or more.(and probably 'white' in the small print) Only you get to keep the tariff. Rich ppls golden tickets. The guy is so for the battler.
@Protractor: He isn't proposing something new. It was scrapped because it was a trash visa that didn't benefit the country.
But someone like Dutton only cares about kickbacks to himself and his donors.
https://www.imidaily.com/asia-pacific/australia-opposition-l…
@greatlamp: Might not be new but it's perverse. On top of over $20k PA for business lunches. FFS surely equipment etc is a better fit. Sadly the Dutton mini me fwit will still become our next PM. Watch him hide under the bed when asked about Trumps latest sick lie about Ukraine. How we are still allies with sociopathic societies is bewildering
@Brianqpr: And it will not stop the remaining 500K in the current pipeline.
That does not include the tens of thousands of expected 'special treatment' workers associated with AUKUS and the live away from base thousands of US military staff and uniformed offices in the current land invasion. In all likelihood there is probable between 100-500K overstayers and illegals at any given time.They aint living under bridges
Insider trading?
It's like steering a ship. You don't turn full left until you are at the desired angle, then turn straight. You see the angle approaching then you back off a bit.
That's what they are doing. They see inflation dropping and they want to slow the approach to land softly on target inflation rather than overshoot it.
Banks will announce they are cutting rates by the full amount with a start date a month away
Not quite
EDIT
At this stage all of the banks who have jumped have an effective date no further out than 4th March
Here's a good list of which lenders are passing on the cut and their respective effective dates (and which lenders are still TBC):
https://www.finder.com.au/home-loans/interest-rate-cuts7 lenders have already confirmed they're passing on the full cut.
2 banks cutting already. Kicks in in 10ish days, I think?
https://www.abc.net.au/news/2025-02-18/bank-rate-cuts/104950…
cut the cash rate for the first time since 2020
People will be dancing in the streets to celebrate their extra $10-$20 per week !!!
This stuff actually does make a difference to people.
What percentage of your spend is housing and what is on everything else that might inflate as a result?
This stuff actually does make a difference to people.
If you have a half million dollar loan and $10-$20 is going to actually 'make a difference', you are seriously in trouble….
I'd be more worried about all the new taxes that the Victorian treasurer said she was going to introduce…
Why hike rates by 0.25 then, as they last did in November 2023, if it makes so little difference?
Its proven that this stuff affects spending, even the small interest rate moves, regardless of how any words you bold.
Its proven that this stuff affects spending
Nah, it’s purely due to the oncoming election
@jv: You actually think the sort of people that run the RBA would be Labor supporters? Wow, what a take.
More worrying was how desperate some LNP types were for no cut as they think it might help them politically. Kind of sums up their view of ordinary people.
@jv: Then why did they raise rates by 0.25% if it makes no difference to the cash flow? That had nothing to do with an election.
Election day is coming.