Cut rates, the AUD will drop and we all end up paying more for just about everything we enjoy/want/need. Opal Tower had to be propped up, we imported the props.
Could the Oz. banks afford to pass on the reduced interest rates - highly unlikely if the AUD drops.
Last Saturday, I went to two house auctions - inner Melbourne Eastern suburbs. One was for a dilapidated house/garden on a 702 m2 block. Opening bid was for $1.4 million, it sold for $1.712 million after intensive bidding by two competitive buyers - I have never seen an auctioneer smile so much during an auction.
Second house was on a 818 m2 block, two stories, two living areas, five bedrooms, two kitchens, three bathrooms, 2 x 2 car garages - everything immaculate. Auctioneer tried hard to get a bid at $1.9 million - dead silence - certainly no smiles from the auctioneer. The place passed in on a vendor bid of $1.95 million.
