Reserve Bank cuts interest rates for the first time since November 2020 [smiley=thumbsup.gif]

RBA Governor is on TV right now answering questions.

Not one question about what caused the high inflation -

we all know it's her - printing money.   ::)

Bobby. wrote on Feb 18^th, 2025 at 3:06pm:

RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::)

The main cause is Albanese and his incompetence.

Armchair_Politician wrote on Feb 18^th, 2025 at 3:30pm:

Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) The main cause is Albanese and his incompetence.

No - the RBA has printed over $1.2 trillion - the amount we are in debt for.

Today’s modest interest rate reduction is welcome.

However, for many Australians it is too little too late.

And that’s because this government has allowed inflation to stay too high for too long.

The USA started cutting interest rates five months ago.

New Zealand and the UK cut interest rates six months ago.

Canada and Europe cut interest rates 8 months ago.

These countries have all now cut rates multiple times. For example,

the USA has cut interest rates by 1 percentage point,

New Zealand by 1.25 percentage points,

Europe by 1.6 percentage points and Canada by 2 percentage points.

Today the Reserve Bank expressed caution about the prospects of further reductions.

Today’s rate reduction will only offset one of the twelve rate rises under Labor.

A family with a typical mortgage has spent an additional $50,000 of interest since Labor came to government.

Australia was one of the few countries that did not lower interest rates last year.

This is because the Reserve Bank has been concerned by inflation they described as “home grown” and which is [made worse by high government spending.

In three budgets, Labor has added $347 billion in spending, which has kept inflation and interest rates higher for longer.

While inflation averaged 2.2% during the previous Coalition Government, it has averaged 4.1% under Labor.

In just 2.5 years,

food is up 12%,

education up 12%,

housing up 14%,

rents up 17%,

financial and insurance up 18%,

electricity up 32% (before rebates)

and gas up 34%.

Australians have had to squeeze their budgets, because Labor can’t control its budget.

High inflation and interest rates mean in the last two years, Australia has had the biggest fall in real disposable incomes in the developed world.

You can’t manage inflation if you can’t manage the economy.

Good news for my daughter who has two mortgages.

Remains to be seen if there will be any good effect on Albo's political fortunes.

Captain Nemo wrote on Feb 18^th, 2025 at 3:44pm:

Good news for my daughter who has two mortgages. Remains to be seen if there will be any good effect on Albo's political fortunes.

Albo will be happy - he needed a bit of good news.   :-[

SerialBrain9 wrote on Feb 18^th, 2025 at 3:43pm:

Today’s modest interest rate reduction is welcome. However, for many Australians it is too little too late. And that’s because this government has allowed inflation to stay too high for too long. The USA started cutting interest rates five months ago. New Zealand and the UK cut interest rates six months ago. Canada and Europe cut interest rates 8 months ago. These countries have all now cut rates multiple times. For example, the USA has cut interest rates by 1 percentage point, New Zealand by 1.25 percentage points, Europe by 1.6 percentage points and Canada by 2 percentage points. Today the Reserve Bank expressed caution about the prospects of further reductions. Today’s rate reduction will only offset one of the twelve rate rises under Labor. A family with a typical mortgage has spent an additional $50,000 of interest since Labor came to government. Australia was one of the few countries that did not lower interest rates last year. This is because the Reserve Bank has been concerned by inflation they described as “home grown” and which is [made worse by high government spending. In three budgets, Labor has added $347 billion in spending, which has kept inflation and interest rates higher for longer. While inflation averaged 2.2% during the previous Coalition Government, it has averaged 4.1% under Labor. In just 2.5 years, food is up 12%, education up 12%, housing up 14%, rents up 17%, financial and insurance up 18%, electricity up 32% (before rebates) and gas up 34%. Australians have had to squeeze their budgets, because Labor can’t control its budget. High inflation and interest rates mean in the last two years, Australia has had the biggest fall in real disposable incomes in the developed world. You can’t manage inflation if you can’t manage the economy.

I've highlighted the most important part. Proof positive that the Coalition are simply better managers of the economy.

Bobby. wrote on Feb 18^th, 2025 at 3:53pm:

[quote author=madmonk link=1739853481/5#5 date=1739857466]Good news for my daughter who has two mortgages. Remains to be seen if there will be any good effect on Albo's political fortunes.

Albo will be happy - he needed a bit of good news.   :-[/quote]

Which is in spite of him, not because of him.

Armchair_Politician wrote on Feb 18^th, 2025 at 3:30pm:

Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) The main cause is Albanese and his incompetence.

inflation was higher under the libs then it is now dumbarse :D

John Smith wrote on Feb 18^th, 2025 at 4:30pm:

Armchair_Politician wrote on Feb 18th, 2025 at 3:30pm: Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) The main cause is Albanese and his incompetence. inflation was higher under the libs then it is now dumbarse :D

Are you sure about that??? Seems to have skyrocketed under Albo. This chart is from ABC News Australia, by the way...

---

Meanwhile, wages growth hits a 2 year low.

The RBA has given a strong indication that there won't be another rate cut any time soon.

If Albo was hoping for another cut in April, he might be disappointed.

Armchair_Politician wrote on Feb 18^th, 2025 at 5:55pm:

John Smith wrote on Feb 18th, 2025 at 4:30pm: Armchair_Politician wrote on Feb 18th, 2025 at 3:30pm: Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) The main cause is Albanese and his incompetence. inflation was higher under the libs then it is now dumbarse :D Are you sure about that??? .

Absolutely. It was 5.1% when scummo left office, now its 2.4%. Not sure about what happens in your world but in my world 5.1 is higher then 2.4.

The Covid 19 pandemic caused a large increase in inflation for obvious reasons.

Bobby. wrote on Feb 18^th, 2025 at 3:06pm:

RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::)

Increasing interest rates is the opposite of printing money Bobby. If the RBA had not done that, inflation would have been much higher.

John Smith wrote on Feb 19^th, 2025 at 12:10pm:

Armchair_Politician wrote on Feb 18th, 2025 at 5:55pm: John Smith wrote on Feb 18th, 2025 at 4:30pm: Armchair_Politician wrote on Feb 18th, 2025 at 3:30pm: Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) The main cause is Albanese and his incompetence. inflation was higher under the libs then it is now dumbarse :D Are you sure about that??? . Absolutely. It was 5.1% when scummo left office, now its 2.4%. Not sure about what happens in your world but in my world 5.1 is higher then 2.4.

WOW! I dumb it down to a picture for you and you STILL get it wrong.  :o

freediver wrote on Feb 19^th, 2025 at 12:47pm:

Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) Increasing interest rates is the opposite of printing money Bobby. If the RBA had not done that, inflation would have been much higher.

But who printed all that money?   $1.2 trillion.

freediver wrote on Feb 19^th, 2025 at 12:47pm:

Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) Increasing interest rates is the opposite of printing money Bobby. If the RBA had not done that, inflation would have been much higher.

Exactly! It's why in Zimbabwe you could at one time get a note for one hundred trillion dollars. That's called "hyperinflation" and was caused by, among other things, printing too much money.

---

Bobby. wrote on Feb 19^th, 2025 at 1:14pm:

freediver wrote on Feb 19th, 2025 at 12:47pm: Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) Increasing interest rates is the opposite of printing money Bobby. If the RBA had not done that, inflation would have been much higher. But who printed all that money?   $1.2 trillion.

Your ignorance is not an argument Bobby.

Bobby. wrote on Feb 19^th, 2025 at 1:14pm:

freediver wrote on Feb 19th, 2025 at 12:47pm: Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) Increasing interest rates is the opposite of printing money Bobby. If the RBA had not done that, inflation would have been much higher. But who printed all that money?   $1.2 trillion.

The RBA injected money into the economy through bond purchases and other unconventional monetary policies, but it didn't actually print banknotes to pay for these purchases. Your argument is false.

Captain Nemo wrote on Feb 19^th, 2025 at 12:15pm:

The Covid 19 pandemic caused a large increase in inflation for obvious reasons.

Covid was the excuse. Most of it was just profiteering

freediver wrote on Feb 19^th, 2025 at 1:16pm:

Bobby. wrote on Feb 19th, 2025 at 1:14pm: freediver wrote on Feb 19th, 2025 at 12:47pm: Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) Increasing interest rates is the opposite of printing money Bobby. If the RBA had not done that, inflation would have been much higher. But who printed all that money?   $1.2 trillion. Your ignorance is not an argument Bobby.

I was just seeing if you know.

The RBA prints or creates all our money.

Is there anything else you'd like to know?

Armchair_Politician wrote on Feb 19^th, 2025 at 1:11pm:

John Smith wrote on Feb 19th, 2025 at 12:10pm: Armchair_Politician wrote on Feb 18th, 2025 at 5:55pm: John Smith wrote on Feb 18th, 2025 at 4:30pm: Armchair_Politician wrote on Feb 18th, 2025 at 3:30pm: Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) The main cause is Albanese and his incompetence. inflation was higher under the libs then it is now dumbarse :D Are you sure about that??? . Absolutely. It was 5.1% when scummo left office, now its 2.4%. Not sure about what happens in your world but in my world 5.1 is higher then 2.4. WOW! I dumb it down to a picture for you and you STILL get it wrong.  :o

I know you got confused with the pictures ... all those pretty colours and lines must be difficult for you, but what part of my statement is wrong? Inflation was higher under the libs then it is now. FACT

Bobby. wrote on Feb 19^th, 2025 at 1:25pm:

freediver wrote on Feb 19th, 2025 at 1:16pm: Bobby. wrote on Feb 19th, 2025 at 1:14pm: freediver wrote on Feb 19th, 2025 at 12:47pm: Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) Increasing interest rates is the opposite of printing money Bobby. If the RBA had not done that, inflation would have been much higher. But who printed all that money?   $1.2 trillion. Your ignorance is not an argument Bobby. I was just seeing if you know. The RBA prints or creates all our money. Is there anything else you'd like to know?

Your point?

freediver wrote on Feb 19^th, 2025 at 1:51pm:

Bobby. wrote on Feb 19th, 2025 at 1:25pm: freediver wrote on Feb 19th, 2025 at 1:16pm: Bobby. wrote on Feb 19th, 2025 at 1:14pm: freediver wrote on Feb 19th, 2025 at 12:47pm: Bobby. wrote on Feb 18th, 2025 at 3:06pm: RBA Governor is on TV right now answering questions. Not one question about what caused the high inflation - we all know it's her - printing money.   ::) Increasing interest rates is the opposite of printing money Bobby. If the RBA had not done that, inflation would have been much higher. But who printed all that money?   $1.2 trillion. Your ignorance is not an argument Bobby. I was just seeing if you know. The RBA prints or creates all our money. Is there anything else you'd like to know? Your point?

I am blaming the RBA for causing the inflation.

Why didn't they stand up to the Govt and say -

NO - we refuse to print more money - it will cause high inflation.

Quote:

I am blaming the RBA for causing the inflation.

Pointing out that there has been inflation and pointing out that the RBA has indirectly printed money is not the same thing as showing a causal link Bobby.

The RBA's actions cause inflation to tend closer to the target rate (2 to 3%) than it otherwise would without RBA interference.

freediver wrote on Feb 19^th, 2025 at 2:22pm:

Quote: I am blaming the RBA for causing the inflation. Pointing out that there has been inflation and pointing out that the RBA has indirectly printed money is not the same thing as showing a causal link Bobby. The RBA's actions cause inflation to tend closer to the target rate (2 to 3%) than it otherwise would without RBA interference.

That thinking caused us to be $1.2 trillion in debt.


http://australiandebtclock.com.au/

Bobby. wrote on Feb 19^th, 2025 at 2:32pm:

freediver wrote on Feb 19th, 2025 at 2:22pm: Quote: I am blaming the RBA for causing the inflation. Pointing out that there has been inflation and pointing out that the RBA has indirectly printed money is not the same thing as showing a causal link Bobby. The RBA's actions cause inflation to tend closer to the target rate (2 to 3%) than it otherwise would without RBA interference. That thinking caused us to be $1.2 trillion in debt. http://australiandebtclock.com.au/

No it didn't Bobby. If you are actually interested, get yourself an introductory macroeconomics textbook, rather than regurgitating every ignorant opinion you stumble across on the internet.

freediver wrote on Feb 19^th, 2025 at 2:51pm:

Bobby. wrote on Feb 19th, 2025 at 2:32pm: freediver wrote on Feb 19th, 2025 at 2:22pm: Quote: I am blaming the RBA for causing the inflation. Pointing out that there has been inflation and pointing out that the RBA has indirectly printed money is not the same thing as showing a causal link Bobby. The RBA's actions cause inflation to tend closer to the target rate (2 to 3%) than it otherwise would without RBA interference. That thinking caused us to be $1.2 trillion in debt. http://australiandebtclock.com.au/ No it didn't Bobby. If you are actually interested, get yourself an introductory macroeconomics textbook, rather than regurgitating every ignorant opinion you stumble across on the internet.

I know that money printing caused hyperinflation
in the Weimar Republic in Germany and in Zimbabwe.
You needed a wheelbarrow of money to buy a loaf of bread.

While we don't have hyperinflation we have had inflation that was too high.

One suburb in Melbourne in 2023 went up 27% in Unit prices and
was also high for house prices.
That's real inflation not the 2 to 3% that the RBA talk about and it's far too high.
I blame money printing.

Quote:

I know that money printing caused hyperinflation in the Weimar Republic in Germany and in Zimbabwe.

So you know 1 thing. I'll concede that you are not wrong on the one thing you know. But it is still just one thing Bobby. You know what to do if you want to actually understand this, rather than just regurgitating every ignorant opinion you stumble across on the internet.

freediver wrote on Feb 19^th, 2025 at 3:05pm:

Quote: I know that money printing caused hyperinflation in the Weimar Republic in Germany and in Zimbabwe. So you know 1 thing. I'll concede that you are not wrong on the one thing you know. But it is still just one thing Bobby. You know what to do if you want to actually understand this, rather than just regurgitating every ignorant opinion you stumble across on the internet.

Yeah you told me -

get an introductory macroeconomics textbook

You're a fast learner Bobby.

freediver wrote on Feb 19^th, 2025 at 3:20pm:

You're a fast learner Bobby.

But is it possible that I'm right -

you know - like the boy who says the emperor has no clothes?


When the Reserve Bank Governor was being asked questions for half an hour yesterday on TV -
not one reporter asked her about all the money printing -
the quantitative easing that the RBA has done and how that may have affected inflation.

Am I the only person in Australia who can see that -
like that little boy who sees the emperor?

I feel alone.

Just to clarify Bobby, you have to actually read it.

freediver wrote on Feb 19^th, 2025 at 4:28pm:

Just to clarify Bobby, you have to actually read it.

Does reading dozens of articles on the web and watching dozens of videos on YouTube about
the fractional banking system count?   :-/

Interest rates have gone up 12 times under labor who now claim they're doing a good job with 1 rate cut.

Here we go with the market crashing upwards again.....

Bobby. wrote on Feb 19^th, 2025 at 8:15pm:

freediver wrote on Feb 19th, 2025 at 4:28pm: Just to clarify Bobby, you have to actually read it. Does reading dozens of articles on the web and watching dozens of videos on YouTube about the fractional banking system count?   :-/

No.

After 12 rises - a .25% cut from 4.35% to 4.10% is SFA.

It's a lot if a big chunk of your income is going into your mortgage. Plus, there are probably a few more to come.

January Core Inflation a bit higher than expected.

Core inflation, the trimmed mean, recorded a surprise rise to 2.8 per cent – still within the RBA's target range but higher than the 2.6 per cent economists had expected.

freediver wrote on Feb 20^th, 2025 at 10:09am:

Bobby. wrote on Feb 19th, 2025 at 8:15pm: freediver wrote on Feb 19th, 2025 at 4:28pm: Just to clarify Bobby, you have to actually read it. Does reading dozens of articles on the web and watching dozens of videos on YouTube about the fractional banking system count?   :-/ No.

I'm an amateur economist.

We are $1.2 trillion in Federal debt

http://australiandebtclock.com.au/

The problem is that money needed for hospitals and schools etc
is used to pay down interest and then the Govt borrows more to
make up the difference they need so we are in a never ending debt spiral.
The Govt spends more than they receive so they put up taxes or
bracket creep helps them too.
It's my understanding that the extra money is created by the Govt
issuing Govt Bonds and the RBA printing money to pay for them.
That causes high inflation and robs the savings of people
who have money in the bank.

Also – people who have money in the bank get charged tax on the interest they made
but no allowance is made for inflation -
so they can actually lose buying power and pay taxes on a non-existent profit.

Gnads wrote on Feb 20^th, 2025 at 10:35am:

After 12 rises - a .25% cut from 4.35% to 4.10% is SFA.

Too bad if you have Private Health Insurance too. Today's increase is a nasty whack.

Captain Nemo wrote on Feb 27^th, 2025 at 9:54pm:

Gnads wrote on Feb 20th, 2025 at 10:35am: After 12 rises - a .25% cut from 4.35% to 4.10% is SFA. Too bad if you have Private Health Insurance too. Today's increase is a nasty whack.

Yes 3.7% increase.

yes – inflation – the cause of all our problems.
Can anyone tell me why the RBA doesn't just refuse to keep printing money?
Seems to me that the RBA caused it.

Goodbye Interest Rate Savings 😔

Labor’s Mark Butler has approved an increase in Private Health insurance premiums that’s larger than the saving from the recent interest rates cut

Bobby. wrote on Feb 27^th, 2025 at 9:37pm:

freediver wrote on Feb 20th, 2025 at 10:09am: Bobby. wrote on Feb 19th, 2025 at 8:15pm: freediver wrote on Feb 19th, 2025 at 4:28pm: Just to clarify Bobby, you have to actually read it. Does reading dozens of articles on the web and watching dozens of videos on YouTube about the fractional banking system count?   :-/ No. I'm an amateur economist. We are $1.2 trillion in Federal debt http://australiandebtclock.com.au/ The problem is that money needed for hospitals and schools etc is used to pay down interest and then the Govt borrows more to make up the difference they need so we are in a never ending debt spiral. The Govt spends more than they receive so they put up taxes or bracket creep helps them too. It's my understanding that the extra money is created by the Govt issuing Govt Bonds and the RBA printing money to pay for them. That causes high inflation and robs the savings of people who have money in the bank. Also – people who have money in the bank get charged tax on the interest they made but no allowance is made for inflation - so they can actually lose buying power and pay taxes on a non-existent profit.

I am pretty sure it is less than that.

The debt is about 1/3 of our annual GDP. In other words, we could pay it off in 4 months.

Would you think it is a problem if your mortgage balance was 1/3 of your annual salary?

freediver wrote on Feb 28^th, 2025 at 8:29pm:

I am pretty sure it is less than that. The debt is about 1/3 of our annual GDP. In other words, we could pay it off in 4 months. Would you think it is a problem if your mortgage balance was 1/3 of your annual salary?

I have heard figures as low as $850 billion - it's hard to know for sure.

What is a greater worry is that it keeps on climbing.
It's like we live on a credit card.

Bobby. wrote on Feb 28^th, 2025 at 10:10pm:

freediver wrote on Feb 28th, 2025 at 8:29pm: I am pretty sure it is less than that. The debt is about 1/3 of our annual GDP. In other words, we could pay it off in 4 months. Would you think it is a problem if your mortgage balance was 1/3 of your annual salary? I have heard figures as low as $850 billion - it's hard to know for sure. What is a greater worry is that it keeps on climbing. It's like we live on a credit card.

It was 42% of GDP in 2019, 35% in 2023.