Well I called it about 2 weeks and it happened.
The Reserve bank had no option but to reduce rates.
The real interesting fact out of all of this is that the if the bank stood up and showed some concern, the RBA most likely would have only dropped rates by 0.25%.
I feel the RBA has made the 0.50% drop to encourage the banks to pass on at least 0.25%.
The first of the banks have however dropped rates by 0.35%.
The only thing I find interesting is that that had that much in margins to cut and why have they already made a small cut beforehand?
The banks have actually come out second best in this because of their greed.
NOW is the time, I see a chink in their armour. So NOW is the time to hit them where is hurts.
Look around!
Shop around for a better deal. Tell your bank you want their best rate possible or you are leaving.
Sometimes you find it is cheaper for a bank to keep a customer than to find a new one and let’s face it no one likes to lose business.
