Comments on: Rate Cut Cup: Halfapercent tightens to firm odds-on http://www.crikey.com.au/2008/11/04/rate-cut-cup-halfapercent-tightens-to-firm-odds-on/ now with extra source Sun, 12 Feb 2012 08:54:01 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Hamish Coffee http://www.crikey.com.au/2008/11/04/rate-cut-cup-halfapercent-tightens-to-firm-odds-on/#comment-7656 Hamish Coffee Thu, 01 Jan 1970 10:00:00 +0000 #comment-7656 I note that TAB shares dropped today. Now if that's not a sign. I note that TAB shares dropped today. Now if that’s not a sign.

]]> By: Andrew http://www.crikey.com.au/2008/11/04/rate-cut-cup-halfapercent-tightens-to-firm-odds-on/#comment-7657 Andrew Thu, 01 Jan 1970 10:00:00 +0000 #comment-7657 I get the impression that rates are being cut not because the Government thinks it will work, but because there is little else to do. Its like taking vitamins when you have Cancer- what the hell. <br /><br />But if people do actually do what the RBA seems to want them to do and borrow cheap money from the banks and go and spend it, then what can it do except get us deeper in the hole? Its politically invisible, I guess. but I would be asking the banks to pass the rate cuts on to business loans - which are higher - and leave housing/credit card rates alone.<br /><br /> I get the impression that rates are being cut not because the Government thinks it will work, but because there is little else to do. Its like taking vitamins when you have Cancer- what the hell.

But if people do actually do what the RBA seems to want them to do and borrow cheap money from the banks and go and spend it, then what can it do except get us deeper in the hole? Its politically invisible, I guess. but I would be asking the banks to pass the rate cuts on to business loans - which are higher - and leave housing/credit card rates alone.

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