RBA rate cut 'was widely expected'

RBA rate cut 'was widely expected' 19/03/2020|4min The Australian’s Adam Creighton has provided an analysis of the latest historic RBA rate cut which was handed down on Thursday saying, "I don't think it is too significant". "It was widely expected," he told Sky News. The Reserve Bank of Australia has cut interest rates to a historic low of 0.25 per cent in a bid to help ease pressure on the economy amid the coronavirus crisis. The rare out-of-cycle meeting for the Reserve Bank saw rates drop by a quarter of a per cent on Thursday as part of the emergency measures. It is the second time rates have been cut in the March month. =============== #RBA conducting repo ops & ready to purchase bonds to support smooth functioning Expect further easing Thurs to include: * 25bp rate cut taking it to 0.25% * yield curve control backed up by QE (bond buying) * some sort of cheap funding deal for banks conditional on lending #ASX200 closed in the red with most of the sectors in negative territory! #ausbiz #markets #marketcrash #interestrates #ratecut #auspol2020 #RBA #RBANews #CentralBanks #StimulusPackage2020 #covid19australia RBA cuts rate 0.25% to 0.25% and ASX 200 Real Estate index plunged another -15% !! -40% from high in just 3 weeks to almost 8 years low. Lawdy, cutting 0.25% from 0.5% isn’t going to stimulate the economy. People aren’t spending, the market is volatile and banks probably won’t pass on all the rate cut. If anything, it will make people nervous about negative rates. Monetary policy is irrelevant. #auspol #rba Quote Tweet RBA: cuts cash rate to 0.25% - commitment not to raise till progress toward full emp & infl target to target a 3 yr yld of 0.25% backed by purchases of gov bonds cheap funding for banks for 3yrs at 0.25% partly conditional on lending to biz Should have targetted the 10yr yld! The US Federal Reserve has been attempting to stop investor panic with its emergency actions, but those moves are like firing “a water gun” when we need “a bazooka,” Tobin Smith, CEO of Transformity Research, believes. Speaking to RT’s Boom Bust, the analyst said that the real problem is in the US debt market, as there is four times as much debt than there was in 2008-2009. “This is as a financial disaster, as a health disaster as an economic disaster – is like we got three neutron bombs dropped on us,” Smith warned. “First we obviously have the coronavirus and the pandemic, then we’ve got the oil pandemic... and then the third bomb is the government sitting around doing sort of half measures when we’ve essentially had a virtual economic attack.” Those factors have equal ripple effects across all the financial system and have already plunged the country into a recession, he noted, adding that the S&P Index can drop to 1,600 points. And now Washington needs to deliver another “neutron bomb that offsets the neutron bomb that had been exploded into our system,” according to Smith