Tuesday, May 3, 2016

Of National Interest

The Australian Reserve bank has announced a 25 point drop in the overnight cash rate to a historic low of 1.75%.  This compares with NZ's current rate of 2.25%.

Isn't it amazing that something as modest as a one quarter percent reduction is touted by  the media as a 'slashing' of rates?

Methinks there's a bit of panic in the financial and fiscal ivory towers of Australia.

And so there damned well should be.

3 comments:

Anonymous said...

In the financial world of huge sums .25% is a slash when it hacks into a very low existing %. Clearly things in Oz are not as rosy as some would like to think they are. NZ isn't far behind either.

3:16

Adolf Fiinkensein said...

3:16

Don't talk nonsense.

NZ has a budget surplus, low unemployment and spending restraint. Australia has an enormous deficit, high unemployment and some sixty billion dollars of announced new expenditure. That's money Australia does not have. The country is about to lose it's AAA sovereign credit rating because of it. Then it will have to pay even higher rates of interest on its existing debt.

So sad to we the once proud economic powerhouse of the Antipodes wrecked by socialist from both sides of the house.

Anonymous said...

25 basis points off 2% is cutting by 1/8th.

that's pretty damn huge.