Malmanu
The RBA is running scared. The economic projections are such that they have only one tool left and that is to drop interest rates. This by the way means nothing to the banks, the RBA does not set mortgage rates the banks do and the cost of their borrowing is rising which is why Im getting more interest now on money invested with the banks.
The RBA is thinking of lowering the overnight cash rate which is all it can do and they will only do that because the economy is faultering and it will have no affect really. The RBA has a big hand in the over inflated property prices.
The RBA can take rates to zero if they like and it will not change mortgage rates, a lot of people are under the wrong impression about what the RBA can and cant do.
Dont be fooled Ive been through several property downturns and this won is just getting started.People who arent old enough to have lived through a few just dont believe or understand it happens. There are still property sprukers saying prices are rising buy now borrow everything you can. This has happened through every down turn. I just dont listen to them any more because they have a vested interest but no amount of BS spruked will change anything. Reality is always the great teacher and the best lessons learned unfortunately are usually the most expensive.
