Reserve Bank cuts interest rates to 2pc

[Neferti]

Huh? 2%?

I have no idea but what the hell does this mean? I paid interest rates of 16.5%, reduced to 12% before I paid it off.

Australia is in REAL TROUBLE me thinks.

[Super Nova]

There was a report on BBC last night saying that the Australian economy was stuffed in some report (maybe KPMG) that came out. It may have to do with debt and it will get worse next year.

Any updates.... cannot find it on line.

[Neferti]

There was a report on BBC last night saying that the Australian economy was stuffed in some report (maybe KPMG) that came out. It may have to do with debt and it will get worse next year.

Any updates.... cannot find it on line.

I no longer have a Mortgage (since 1996) so I own my house outright. However, I do wonder about our Interest rates being down to 2% but have absolutely no idea what that means, except it sounds like a DISASTER!

My daughter has a Mortgage with CBA and I think that is at 4% locked in for a couple of years. Unlike when I had a Mortgage, they can repay the loan weekly or fortnightly ... I could only pay monthly so I paid a LOT more to the Bank. Until through "events" I could pay the lot off, so saved myself "millions" ...

[Rorschach]

It's the CASH Rate Nef.
Also known as the interbank overnight rate, that's the rate financial institutions charge each other to borrow or lend on an overnight unsecured basis.
Hope that helps a bit.

[mantra]

There was a report on BBC last night saying that the Australian economy was stuffed in some report (maybe KPMG) that came out. It may have to do with debt and it will get worse next year.

Any updates.... cannot find it on line.

I no longer have a Mortgage (since 1996) so I own my house outright. However, I do wonder about our Interest rates being down to 2% but have absolutely no idea what that means, except it sounds like a DISASTER!

My daughter has a Mortgage with CBA and I think that is at 4% locked in for a couple of years. Unlike when I had a Mortgage, they can repay the loan weekly or fortnightly ... I could only pay monthly so I paid a LOT more to the Bank. Until through "events" I could pay the lot off, so saved myself "millions" ...

I paid 18% at one time so I've felt the pain too. It was a dark time and thousands of people lost their homes, but this super low interest rate is more worrying because eventually interest rates will have to go up and people are borrowing heavily to pay for their million dollar homes. More and more jobs are being lost also, so you can see what's going to happen. The bubble will have to burst.

For those who paid these exorbitant interest rates and paid off their houses and can finally save, the combination of the falling dollar and such ridiculously low interest rates means that our savings mean nothing. You may as well keep your money under your mattress.

I heard that the banks have invested heavily in the large iron ore companies and there are so many of them going under that the banks will try and recoup their losses any way they can.

[Neferti]

It's the CASH Rate Nef.
Also known as the interbank overnight rate, that's the rate financial institutions charge each other to borrow or lend on an overnight unsecured basis.
Hope that helps a bit.

Thanks Rorschach. I should know better than to read headlines and jump to conclusions.