The effects of the interest rate cut - Have your say
Posted by LC Team, Wednesday, October 8, 2008
Once we all picked our jaws off the floor after the announcement yesterday by the RBA of a full percentage point reduction in the cash rate to 6.0%, many people were left wondering - what’s this mean for me?
Subsequent news followed that the majority of this will be passed on by the major banks and other lenders. But what does it all mean for us? Will it stimulate the economy? Will it ease the financial burden that so many of us face in these uncertain economic times?
Brokers, lenders, mortgage managers or anyone at at the front line of this interest rate cut - tell us your thoughts by commenting below.
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Elia Saba October 8, 2008
One Interest Rate cut at this time is the same as pumping the sick economy with Oxygen. It will help the breathing but the economy will remain sick. It should be coupled with legislation. Low Australian dollar means high import costs. Carefully designed mini-grants (direct to small investors) by the state governments to boost the local industry including services (not just the commodities) will deliver a more comprehensive solution.