I'm tipping a 50 basis-point rate cut; given, the slow down in mining investment, general investment sentiment, the current nature/state of the non mining economy; the high dollar; the depressed housing market; the still very fragile nature of the global economy; and, the historical record of banks, failing to pass on all of the rate cut; and, the economic outcome the fed actually wants to achieve?
Rhrosty.

Oh, goodie, the mortgage holders cheer a rate drop while the ones who loan the money from their savings continue to be punished by the ever-lowering of their already small income stream from interest. Inequality abounds in Australia!

Howard did this during his reign and, indirectly, he encouraged people to borrow more far more than they could afford to repay. When interest rates rose, these folk squealed like stuck pigs.

Looks as though we're about to do the same thing again. Perhaps I'll just put what money I have under the mattress!

But hang on, we are in great shape, the envy of the world. APPARENTLY!

What a joke.

It's just a pity some people are gullible enough to fall for the labor spin.

As for Howard encouraging borrowing, may I remind David that he did this as we were coming inti good times.

In contrast, K Rudd increased the first home buyers grant to some $21K, as the worlds financial sectors where beginning to crumble.

Hardly something to crow about.

As I have written before on another post today:

The bottom line is that rampant credit growth for much of the past 20 years caused an oversupply of consumption goods. The whole retailing sector is oversupplied. People are still shopping…it has nothing to do with confidence. What you're seeing is simply a structural change and the painful process of working off excess capacity.

I would hardly worry about inflation; deflation is going to be the global norm for a long, long time to come.

The entire Keynesian model is broken, it's just such a pity most economists fail to realise it.

Eventually the $700 trillion derivative bubble,which is 10 times the GDP of the planet,will burst.These are the financial weapons of mass destruction that reek havoc on our currencies,savings and super funds.

Where has all this money that private central banks created ( except the RBA) created gone? Most of it have gone to prop up their ponzy scams and make the bubble bigger a our expense.

The really big collapse has yet to happen.

The news on the radio devotes hours of comments by economists (who did not see the GFC coming) giving their opinions on whether the Reserve Bank will increase, reduce or leave the interest rates unchanged. Why not wait until the decision is announced? The guessing game goes on until minutes before the Reserve Bank announcement, and the guessing for the next month commences minutes after the announcement.
Give us all a break and give us some news about our natural environment and about Indonesia, India and China which are where most humans live.