Nick Garlaounis 1RBA Slashes Rates - Largest in 16 Years
October 8th 2008 03:22
And now for some good news, the RBA has officially dropped its cash rate by a full percentage point. This is the largest drop in 16 years, the last time Australia saw a decrease like this was when the country was coming out of the recession we had to have.
This recent move by the RBA may well breathe some life into the economy and is a pleasant suprise given we were all waiting for a quarter percent, the question remains as to whether or not the major banks will pass on the full amount to the consumer market.
So far Westpac has come out and said that they will be passing on up to 80 basis points which is a great sign and given that one major has done this it is likely that the others will follow a similar tack.
The timing of this interest rate drop could'nt be better as we are leading into the Christmas season and retailers are struggling to turn a profit. By the time this interest rate drop has filtered down to the home owner the crazy shopping season will have commenced and with more money available this could well mean that the retail sector may yet have a boyuant Christmas period.
More needs to be done though and the Labor government needs to step in take a serious look at what it's doing from an economic control perspective. The first port of call I would strongly suggest is looking at the removal or lowering of the exscice tax on fuel or the removal of the GST component. In essence this is a double dip as it is simply a tax on a tax, the impact of the Labor governments decision to do this will have far reaching effects on the economy as we are still a fossil fuel driven economy and culture.
What's wrong with paying 15 cents less at the pump? Nothing! Wake up Australia, we're all being robbed by the most heavily taxed nation on Earth. The Federal government needs to wake up and just do something about it!!
<a Really Long Link Really Long Link alt="Add to Technorati Favorites" /></a>
This recent move by the RBA may well breathe some life into the economy and is a pleasant suprise given we were all waiting for a quarter percent, the question remains as to whether or not the major banks will pass on the full amount to the consumer market.
So far Westpac has come out and said that they will be passing on up to 80 basis points which is a great sign and given that one major has done this it is likely that the others will follow a similar tack.
The timing of this interest rate drop could'nt be better as we are leading into the Christmas season and retailers are struggling to turn a profit. By the time this interest rate drop has filtered down to the home owner the crazy shopping season will have commenced and with more money available this could well mean that the retail sector may yet have a boyuant Christmas period.
More needs to be done though and the Labor government needs to step in take a serious look at what it's doing from an economic control perspective. The first port of call I would strongly suggest is looking at the removal or lowering of the exscice tax on fuel or the removal of the GST component. In essence this is a double dip as it is simply a tax on a tax, the impact of the Labor governments decision to do this will have far reaching effects on the economy as we are still a fossil fuel driven economy and culture.
What's wrong with paying 15 cents less at the pump? Nothing! Wake up Australia, we're all being robbed by the most heavily taxed nation on Earth. The Federal government needs to wake up and just do something about it!!
<a Really Long Link Really Long Link alt="Add to Technorati Favorites" /></a>
| 25 |
| Vote |
Add To: 
Subscribe to this blog
