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Damned if you do , Damned if you don’t, pardon my English but that seems to be the situation  with rate cuts , RBA and banks.

RBA today kept the cash rate on hold with no changes  to stay at 4.25 per cent

rate cuts media  banks and RBA Australia

The politics of rate cuts ,Banks and Media bashing

The situation is getting out of hand  come every  time when the RBA has to make a announcement  for  rates to increase or decrease. ITs become a big media  circus  come every rate announcement by the RBA , Banks get thrashed  even before a rate announcement is made  and held guilty , analysts and economists have a hey day  predicting what they think will happen , and the media  adds to the frenzy  by amplifying all the news with wicked twists  to their benefit having a go at banks, Lenders  and raising a ruckus giving banks much negative publicity .

Luckily punters took a sigh of relief this time, as they was no  rate increase.. but nor did people get a discount as well.  The RBA did not heed any  economists prediction or media hearsay and chose to do what  they though was right  and let the rates stay the same

told you so wayne swan rba rates on hold feb 07 2012

RATE Stays Put while banks stay neutral

The rates staying the same has put the banks in a bit of a predicament, while  they raised the gauntlet last time (ANZ)  saying they  will wait  a bit before they decide how they react to the  rate announcement . RBA by  not changing the rates have not given them an excuse  anyway. Its is going to be a tricky situation for the banks , because the  first bank to pass on a decrease always sticks in the mind of the consumer as a good bank.

The waiting game if  pursued by the banks could be the difference between good PR and Bad PR for the Bank. .  So we will wait for the next rate announcement . Until  then good luck for the next rates announcement  by the RBA.

Predictions by media

February 07 –

Reserve Bank is tipped to cut the official cash rate to 4 per cent today _ Herald sun

Reserve Bank board meets this morning in Sydney to consider whether to cut the official cash rate a further 0.25 points to 4 per cent- theage.com.au

The Reserve Bank of Australia is tipped to cut the official cash rate to 4 per cent at 2pm today.- http://www.theaustralian.com.au

Punters believe Reserve Bank will cut, but banks won’t pass on in full – www.news.com.au/my

Article by sheldon singh



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