RCR Finance Bulletin # 16 - Wednesday 8th October, 2008
RESERVE BANK STUNS FINANCIAL MARKETS
You may well by now be aware that The Reserve Bank has stunned financial markets by announcing a full 1% rate cut which is double what analysts had tipped - saying financial markets had taken a "significant turn for the worse.''
The Reserve Bank cut its key cash rate from 7% to 6%, double the 50 basis-point cut expected by markets. The move follows a 25 basis-point cut by the RBA in September, lowering the lending rate from a 12-year high.
This is perhaps the sharpest rate cut I have experienced in my 28 years in the Banking and Finance Industry, and is a significant "about face in Australian monetary policy history," according to Matt Robinson, economist at Moody's Economy.com.
This is perhaps the sharpest rate cut I have experienced in my 28 years in the Banking and Finance Industry, and is a significant "about face in Australian monetary policy history," according to Matt Robinson, economist at Moody's Economy.com.
''It's such a change from where the central bank was when it raised interest rates in February and March."
Have a great week
Have a great week
DISCLAIMER...The information contained within this Newsletter / Bulletin is of a general nature only and is not intended to be relied upon or to be construed as the giving of professional financial, legal or economic advice. RCR Finance Pty Ltd makes no warranties or representations whatsoever regarding the quality, accuracy, or otherwise of any material contained within this Newsletter / Bulletin. RCR Finance Pty Ltd will not be held liable to readers or users of the material contained within this Newsletter / Bulletin for any loss or damage however caused resulting from the use of the material. All readers or users are advised to seek their own independent professional financial, legal or economic advice.
